Liability Driven Investing

The Dynamism of a Cyclist: EDHEC on LDI

May 7th, 2014 | Filed under: Institutional Investing, Liability Driven Investing, Risk management, Today's Post

Europe's pension fund managers embrace LDI quite generally, and many embrace the "dynamic" version of that strategy. But four scholars at EDHEC find it curious they don't do so for the right reason -- they don't seem to see LDI as the risk-management imperative it is.


Defusing a Demographic Time Bomb: A Pension Fund Case Study

Apr 29th, 2014 | Filed under: Asset allocation, Institutional Investing, Liability Driven Investing, Today's Post

Longevity hedging transactions are growing at an exponential rate in the UK. We focus on one case study in such transactions that might encourage (cautious) optimism about the tractability of demographics.


Consultants: Clients Want to Learn About LDI

Dec 5th, 2013 | Filed under: Institutional Investing, Liability Driven Investing, Socially responsible investing, Today's Post

For pension managers these days, decision making is about managing a glide path that doesn't become a fiery crash. In appealing to such clients, consultants shouldn't think of themselves as sales people selling particular products in separate boxes.


East Asian Chickens Come Home to Roost

Jul 17th, 2013 | Filed under: Institutional Investing, Liability Driven Investing, Today's Post

In east Asia, savings rates have long been high and constant, and cannot plausibly be expected to get much higher. Indeed, they may in certain respects be too high. Thus, progress in addressing the pension/demographic crunch has to come on the asset management side.


Dressing your pension fund: One leg at a time

Sep 5th, 2011 | Filed under: Institutional Investing, Liability Driven Investing, Today's Post

Just like the rest of us, those who run pension funds put their pants on in the morning one leg at a time. And just like the rest of us, after balking at alternatives post-2008, a growing number are gaining more confidence in them as a way to fulfill their mandates.


UK Report: Early retirement dreams washing away for millions

Mar 14th, 2011 | Filed under: Hedge Fund Industry Trends, Liability Driven Investing, Today's Post

Freedom 66 for pensioners could easily mean Freedom 45 or even Freedom 35 for hedge fund managers, thanks to their recent contributions towards helping to partially offset liability issues, according to a report by TheCityUK.


Pension funds look for opportunities to score points while they wait (and hope) for liabilities to choke

Nov 14th, 2010 | Filed under: Commodities, Liability Driven Investing, Today's Post

A survey of pension funds and endowments by Deutsche Bank indicates that investors see themselves as having two options to dig themselves out of their current hole: aim for higher returns by dumping equities overboard, or waiting around for interest rates to take care of their liabilities.


Pension Funds: Okay, forget 8%. Just get us out of this hole!

Sep 23rd, 2010 | Filed under: Institutional Investing, Liability Driven Investing, Today's Post

For pensions it's quickly gone from 8%-plus assumed returns to fighting just to keep the assets and liabilities in sync.


Report says that after 2008, “the case for LDI has moved from the head to the heart”

Jan 15th, 2009 | Filed under: Liability Driven Investing, Today's Post

Russell Investments says LDI has been moving slowly from academic journals to the mainstream. But 2009 will the the year when attitudes really change.


Poll reveals explosive growth in LDI

Sep 1st, 2008 | Filed under: Liability Driven Investing, Today's Post

SEI released a poll of pension plans last week that reveals what is probably the biggest story in institutional investing last year - and it's not hedge funds (per se).


LDI: The Quest for “Del Boca Vista”

Jul 7th, 2008 | Filed under: Liability Driven Investing

The release of a new survey on liability-driven investing prompted us to ask ourselves what the strategy was really all about.


Manager suggests possible conflict of interest in Liability-Driven Investing

Sep 4th, 2007 | Filed under: Liability Driven Investing

There seems to be a growing debate about the best way for pensions to match their assets and liabilities. And at least one manager is even suggesting there may be a conflict of interest brewing.


LDI Sausage

Jul 30th, 2007 | Filed under: Liability Driven Investing

While many people love a good sausage with their eggs, no one wants to see how they're made. Apparently, ING has now applied the same logic to liablity driven investing (LDI).


Swaps: “The hand in the absolute return glove”

May 3rd, 2007 | Filed under: Liability Driven Investing

Liability-driven investing traditionally involves measuring pension fund returns against a benchmark made up of the plan's own liabilities. But what if you could swap those liabilities for fixed ones?


LDI: Portable Alpha’s First Cousin

Mar 27th, 2007 | Filed under: Liability Driven Investing

On the family tree of modern investment management “LDI” and “Portable Alpha” are first cousins. Unfortunately, familial affection doesn’t necessarily go both ways. But LDI is doing fine, thanks.


Legal warning over too safe LDI

Nov 21st, 2006 | Filed under: Liability Driven Investing

By: Daniel Brooksbank, IPE.com Published: November 20, 2006 Clients of Portable Alpha’s cousin Liability-Driven Investing (LDI), take note:  According to UK law firm Reynolds Porter Chamberlain, trustees who embrace LDI can leave themselves exposed to negligence claims for being too conservative. According to IPE.com: “Reynolds’ partner Simon Goldring said the strategy could be storing up problems […]