Our new LDI Enhanced Selection Funds complement our existing LDI pooled range. They provide a simple and cost-effective LDI solution typically sought by small to mid-sized pension schemes.
The Funds seek to offer a complete liability hedge within a single pooled structure. They provide direct access to our market-leading LDI capabilities, coupled with easy access and simple governance.
Our market-driven approach involves dynamic management of hedging exposures between gilts and swaps. This can provide significant cost savings over a more traditional 'buy-and-hold' approach.
|Specific benefits of the LDI Enhanced Selection Funds include:
Performance: our dynamic allocation between different hedging instruments, particularly gilts and swaps, means we can provide clients with highly effective hedges that adapt to changing marketing conditions.
Simplicity and cost: potentially ideal for those implementing a LDI strategy for the first time, or those looking for a simple hedging solution based on a typical liability profile. They have:
• a competitive fee structure
• low legal and governance requirements
• no need for a separate custodian
• transparent regular reporting
• you can mange interest rate and inflation risk, separately or in combination
• partial funding enables effective hedging using only a portion of scheme assets, leaving the balance free to invest for growth
• you can combine the Funds with Insight's return-seeking strategies or those from an external manager.
The Funds are managed to provide an effective liability hedge for a typical UK pension scheme, removing the need for trustees to dedicate limited resources to designing, implementing and monitoring a more precise hedge for their liabilities.
Read more about our
Enhanced Selection Funds and
Insight’s LDI pooled fund platform.