FDs snub LDI on DB scheme funding
Survey shows that less than 4 out of 10 FDs and pension scheme trustees think of liablity driven investment as a valuable strategy
FDs have given the idea of liability driven investment for defined benefit
pension schemes the cold shoulder.
LDI’s main goal is to gain sufficient assets to meet all liabilities, both
current and future, but finance bosses and pension trustees preferred to bank on
increased contributions from scheme members.
Scottish Widows Investment Partnership made the findings after a survey of 80
UK defined benefit schemes with an average size of £206m.
The main sticking point was attributed to the fact that LDI was too
complicated or expensive.