Browsing: Liability Driven Investing

Liability Driven Investing

Exley on Cashflow-Driven Investment

Nov 26th, 2017 | Filed under: Liability Driven Investing, Newly Added, Asset allocation, Asset Allocation Models, Institutional Asset Management

A new paper by Jon Exley, solutions manager of Schroders, discusses cashflow-driven investment (CDI) as a system of portfolio management that accepts and builds upon liability-driven investment (LDI). The idea in both cases is to match all future projected liability payments as they fall due, which is definitionally the imperativeRead More

KPMG, MFA & AIMA: Institutional Investors & Customization

Mar 19th, 2015 | Filed under: Hedge Fund Industry Trends, Liability Driven Investing, Hedge Fund Strategies, Institutional Investing, Alternative Mutual Funds, Regulatory, Asset allocation, Fees

Surveys suggest that certain conspicuous ongoing trends will continue. For example, the classic 20 + 2 fee structure will continue to crumble, replaced by "customized" structures. A full 91% of the small hedge fund managers who filled out a survey agreed with this. A mere 76% of large hedge fund managers did likewise. Read More

Explaining Why the Portfolio-Barbell Works

Jan 20th, 2015 | Filed under: Liability Driven Investing, Risk management, Emerging markets

Most efforts to introduce "entropy" into finance have seen it as a quantity to be minimized. A new paper, which begins as an effort to explain barbell portfolios, uses entropy in a different manner. Unfortunately, it doesn't really end up clarifying those barbells. Read More

Longevity Risk: Wary of Your 2015, and of Somebody Else’s Life Span?

Dec 21st, 2014 | Filed under: Liability Driven Investing, Institutional Investing, Risk management, Socially responsible investing

The new survey from Natixis tells us that a lot of asset-managing institutions think their industry as a whole has been quite slow about moving in the direction of liability-driven investment strategies. Also, more than half believe traditional assets are too correlated to provide them with the diversification they need. Read More

East Asian Chickens Come Home to Roost

Jul 17th, 2013 | Filed under: Liability Driven Investing, Institutional Investing

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. Read More

Dressing your pension fund: One leg at a time

Sep 5th, 2011 | Filed under: Liability Driven Investing, Institutional Investing

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.Read More

UK Report: Early retirement dreams washing away for millions

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

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.Read More

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

Nov 14th, 2010 | Filed under: Liability Driven Investing, Commodities

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.Read More

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

Sep 23rd, 2010 | Filed under: Liability Driven Investing, Institutional Investing

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

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

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

Poll reveals explosive growth in LDI

Sep 1st, 2008 | Filed under: Liability Driven Investing

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).Read More

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. Read More

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.Read More

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).Read More

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?Read More

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. Read More

Legal warning over too safe LDI

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

By: Daniel Brooksbank, 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 “Reynolds’ partner Simon Goldring said the strategyRead More