A focus on LDI counterproductive for pension funds – M&G Investments

business graph

An over-reliance on liability-driven investment (LDI) could prove counterproductive for pension funds, as complete asset matching can lead to missing investment opportunities, says David Lloyd, head of institutional portfolio management at M&G investments.

Inflation and interest-rate liability hedging have both surpassed £6 billion per quarter this year among UK pension funds, but Lloyd says this precise matching of assets to liabilities could leave a lot of residual value behind, damaging a

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: