Tag Archives: LDI
Pension Professor finds trustee investment in Leveraged LDI “speculation” and “ultra vires”
Philip Bennett, one of Britain’s top pension lawyers , has published a paper prepared for the APL Summer Conference held on 16th June, 2023 Leveraged LDI: Prudent deficit risk management or ultra vires speculation? The paper looks at the underlying … Continue reading
Derek Benstead provides a fresh view on collective pensions this morning at 10.30am
Pension PlayPen Coffee Morning 10.30 am Tuesday 4th July Fresh from his visit to Parliament to explain to the Work and Pensions Committee why open DB schemes have a future (along with CDC) , he’s now joining us for … Continue reading
Derek Benstead, DB by name – collective by nature! PP Coffee Morning – July 4th
Pension PlayPen Coffee Morning 10.30 am Tuesday 4th July Fresh from his visit to Parliament to explain to the Work and Pensions Committee why open DB schemes have a future (along with CDC) , he’s now joining us for … Continue reading
Were LDI pooled funds technically bust – last September?
When the Bank of England stepped in to the long dated gilts market in September last year, it did so to stop contagion from the collapse of certain pooled LDI funds. It is now becoming clear that at least two … Continue reading
The real cost of de-risking ; Keating and Clacher’s submission to parliament
This is Con Keating’s and Iain Clacher’s submission to the Work and Pensions Committe’s call for evidence on “Defined benefit pensions with Liability Driven Investments”. Written in March of this year, it represents an important perspective on the subject that … Continue reading
Posted in pensions
Tagged Con Keating, de-risking, DWP, Iain Clacher, LDI, TPR, Work and Pensions Committee
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“The next European financial mess is unlikely to start with a bank”
Thanks to Robert Armstrong of the FT for the quote and to the ECB for providing this handy table, which serves as a sort of glossary of how things can go wrong: The thing that seems common to the stress … Continue reading
DB Scheme Funding: Some Empirical Results and Consideration
We have been collecting the reported funding ratios of DB schemes since December 2022. Through this analysis we are finding some fairly large discrepancies between reported funding ratios and the widely broadcast narrative of highly significant improvements of those … Continue reading
Forget the doors, we need new stables – FCA and TPR’s LDI guidance
I doubt that any conversation surrounding TPR and FCA’s guidance on managing LDI will not reference stable doors, horses, creaking hinges or boults. Being wise after the event is something we are all very good at, being wise before the … Continue reading
Portfolio Resilience – the transition to LDI II
Advocates of Liability Driven Investment (LDI) have been busy reassuring the authorities that LDI no longer constitutes a threat to financial stability. They have been doing this, in increasing volume and frequency since the end of the Bank of England … Continue reading
John Lewis’ pension expected to show a surplus
John Lewis staff pension fund drops by £2.8 BILLION Pension assets slump puts pressure on John Lewis John Lewis Partnership defended the financial strength of its pension fund this weekend after it emerged that the market value of its pension … Continue reading