Catching the LDI bug

Europe

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Spurred by changing regulation that has altered how pension funds account for their liabilities, the UK, the Netherlands, Sweden and Denmark have all been swept up by the liability-driven investment (LDI) bug. LDI encourages an investment framework where the choice of assets is dictated by a pension's particular liabilities, and how far to match or try to outperform them. Moving away from the volatile nature of equities, pension funds in these countries have embraced LDI with inflation-linke