Tag Archives: LDI
Being Objective about Liability Driven Investment
Following our blog on the costs of LDI ( https://henrytapper.com/2023/03/25/the-costs-of-ldi-keating-and-clacher/ ), we received a comment which said: “To be objective don’t you have to look at the aggregate round trip? i.e., money made from LDI since the start to … Continue reading
Boris Johnson could learn to answer questions from Laura Trott.
Yesterday brought the nation’s attention to the work of select committees, mainly due to the “grilling” of Boris Johnson by the Parliamentary Privilege’s Committee. It was hard not to notice just how professional that Committee behaved, how well briefed it … Continue reading
USS – you’ve never had it so good/bad – (delete as necessary)
How USS sees itself and how others see it. I have just read an article that relates the views of Simon Pilcher on the success of USS’ investment strategy in the 12 months to September 2022. The Universities Superannuation Scheme, … Continue reading
Posted in pensions
Tagged assets, gobbledeegook, LDI, leverage, Pensions, Simon Pilcher, USS, VFM
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The Lords’ findings and recommendations on leveraged LDI.
In a strongly worded report, the House of Lords Industry and Regulators Committee has criticised the use of leveraged liability-driven investment (LDI) strategies by defined benefit (DB) pension funds, which played a significant role in the financial turmoil following the September … Continue reading
PIRC tells WPC – LDI crisis a product of poor accounting standards
This blog is a transcription of the submission of Pensions & Investment Research Consultants Ltd (PIRC) to the Work and Pension Committee’s inquiry Defined benefit pensions with Liability Driven Investments 1 Summary Problems with the accounting standards which have led to … Continue reading
Posted in pensions
Tagged LDI, Pensions, PIRC, Tim Bush, Work and Pensions Committee, WPC
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The PPF report a £400bn fall in DB assets in 2022
The PPF’s estimate suggests that 23% of the asset base of Britain’s £1.8 trillion pound funded DB pensions has evaporated during 2022. This is equivalent to 23% of the assets. What goes down, will come back up but … Continue reading
BOE pins LDI crisis on the “obscurity” of small DB funds.
Yesterday I reported on BOE +PRA batting for the pensioner against Government – batting for insured buy-out. That discussion was played out in front of parliament’s Treasury Committee on Monday and that same meeting – part of an inquiry into … Continue reading
Time for the FCA to review its DC lifestyle guidance ?
Thanks to James Farr of Aviva for helping me out with the FCA’s most recent pronouncements on pension lifestyling. James and I worked together at Zurich some 20 years ago and it’s great to know compliance experts at a time … Continue reading
“How do we tell the children?” Our awkward problem over lifestyle.
For the purpose of this article – I will refer to some savers as our “children“, those under our care who have suffered loss while sleeping. They are the unwitting victims in the collapse in bond markets , including … Continue reading
Could DC consolidation cause a fresh pension crisis?
In this blog I argue that DC has its own version of LDI which is still embedded in many occupational DC schemes. Transferring out of these schemes risks crystallising losses for savers – akin to “losing the LDI … Continue reading
Posted in pensions
Tagged consolidation, DC pension, Hedge, LDI, Pension consolidation, Trustee liability
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