- Sovereigns
- Private Equity & Infrastructure Funds
- Housing & Social Infrastructure
- Transport & Utilities
- Pension Funds
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- Asset and Liability Management (ALM) strategies and implementation of holistic LDI risk management frameworks
- Derivatives Modelling and Advisory, including the appropriate structuring of ISDAs and collateral arrangements
- Execution of LDI derivative strategies
- Counterparty credit exposure pricing and management
- Access to non-government inflation linked assets through bonds and swaps
Pension Funds
In the wake of the global financial crisis, pension funds are increasingly focussing on risk-adjusted performance measurement relative to liability benchmarks, rather than the flawed traditional approach of measuring portfolio performance relative to investment benchmarks. More sophisticated pension funds have now adopted, or are moving towards, a Liability Driven Investing (LDI) approach as part of their overall portfolio strategy. LDI entails investing with a view to matching or outperforming pension fund liabilities. The result of this shift in investment philosophy has been a switch of focus from equities to long dated corporate bonds which more effectively match the duration risks in pensions liabilities. The use of interest rate and inflation swaps in LDI strategies is also gaining much traction.
Our solutions for pension funds include:
- Asset and Liability Management (ALM) strategies and implementation of holistic LDI risk management frameworks
- Derivatives Modelling and Advisory, including the appropriate structuring of ISDAs and collateral arrangements
- Execution of LDI derivative strategies
- Counterparty credit exposure pricing and management
- Access to non-government inflation linked assets through bonds and swaps
