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    Risk management

    Risk management

    The ability to manage both asset and liability risks is key to manage outcome certainty. We provide tailored solutions to address a comprehensive array of risk factors and asset classes including interest rates, inflation, equity, credit, inflation, longevity and currency.

    A leading risk manager

    £413.5bn

    assets under management in risk management solutions1

    #1

    UK investment consultants have ranked Insight in first place for Overall LDI Quality for 12 consecutive years2

    2004

    Year Insight launched its LDI capability

    #1

    Insight is the number one ranked manager of LDI assets based on worldwide assets3

    A specialist in LDI

    Insight’s leadership in liability-driven investment (LDI) is built on over two decades of experience helping a wide range of pension schemes, large and small, to develop and implement robust long-term funding strategies focused on their endgame objectives. Over the years we have helped our clients to evolve their approach to managing liability-related risks in response to changing circumstances and market conditions.

    We have long experience and expertise in managing the key liability risks for defined benefit pension schemes, using both pooled and segregated LDI solutions.

    Our 'intelligent' hedge management approach aims to ensure our LDI solutions remain efficient and cost-effective in a very dynamic market and regulatory environment.

    Insight's LDI platform has risk protection mechanisms which have helped to protect our clients through stressed market events.

    Related content:

    The next biggest risk for UK defined benefit pension schemes, after interest rates and inflation, is longevity risk.

    Insight has extended the LDI toolkit by providing a platform through which small and large pension schemes can efficiently transfer longevity risk to the reinsurance market.

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    Source: Club Vita, April 2021. Based on information in the Pension Regulator’s Scheme Funding Analysis 2020 and 2010 and the PPF’s Purple Books, approximately converted. Figures show the drivers that would increase the deficit in the average of the worst 5% (1 in 20) outcomes.

    Related content:

    Over the last few years, more of our pension scheme clients are turning towards integrated risk-management solutions specifically designed to help them reach their funding objectives with increased investment efficiency, lower governance and greater resilience.

    In partnering with pension schemes to build an integrated solution, we aim to help manage the three main sources of risk: liability risks, return risks and cashflow risks.

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    Partnerships for the long term

    Partnerships for the long term

    A robust risk-management investment platform is important, but so is high-quality service. We work in close partnership with our clients and their advisers, with a wide range of Insight specialists on hand to help our clients, working to understand the problems they face.

    A robust risk-management investment platform is important, but so is high-quality service. We work in close partnership with our clients and their advisers, with a wide range of Insight specialists on hand to help our clients, working to understand the problems they face.

    How we work with you

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    Market Data

    Market Data

    To keep abreast of daily market moves, please visit our Market Monitor which we update every weekday morning with levels at the end of the previous working day.

    To keep abreast of daily market moves, please visit our Market Monitor which we update every weekday morning with levels at the end of the previous working day.

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    Managing currency exposure

    Foreign currency exposure can add unwanted volatility, but also a source of alpha. Our customized currency solutions can help your strike your desired balance between hedging and seeking alpha.

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    Reduce risk by hedging undesired currency exposures cost-effectively using static hedge ratios or more bespoke downslide limits.

    Mitigate currency losses while aiming to capture gains by dynamically altering currency hedges based on our proprietary framework evolved over 25 years.

    Seek positive returns in developed and emerging currency markets in all market conditions by exploiting diversified sources of alpha.

    Managing exposures through derivatives

    Access a broad array of passive and active derivatives strategies to add value to your portfolio.

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    Downside protection

    Downside protection

    Strategies can be constructed using derivatives to help protect against the impact of downturns in equity markets, while also maintaining some degree of exposure to upside movements.

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    Release capital

    Release capital

    Derivatives require only a portion of total market exposure to be set aside initially, allowing you to gain desired exposures while leaving assets free for other purposes.

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    Modify asset profiles efficiently

    Modify asset profiles efficiently

    Derivatives can help you adjust your assets on an ongoing basis to better reflect your liabilities more swiftly and cheaply than through trading physical assets.

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    Manage overall exposure

    Manage overall exposure

    Derivatives can help target and modify total exposures across multiple portfolios – even if they are managed by different asset managers.

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