LDI health check | Insight Investment

As the landscape for UK defined benefit (DB) pension schemes continues to evolve, trustees and sponsors face an array of strategic choices amid regulatory change and economic uncertainty. We share our current thinking on how DB schemes can ensure an effective and efficient liability hedge.

Key takeaways

• A health check of your LDI strategy will help identify areas for improvement and will offer confidence when it comes to strategic decisions for the longer term.
• We present key questions to consider as you look to judge whether your liability hedge is robust, efficient, responsive to scheme objectives, and capable of adapting to future changes in the financial landscape.
• We also focus on areas The Pensions Regulator (TPR) has identified for further improvement in schemes’ collateral management, suggesting ways to pursue increased diversification and dynamism in line with TPR expectations.

Read our paper A new world for UK DB schemes to find out more, along with other key trends for pension professionals to consider.