A different perspective on LDI
The writer is chief executive of Insight Investment
It is still early to talk about the crisis in the UK pension fund industry in the past tense, often a prerequisite for rational discourse. Nevertheless, I feel compelled to advance an alternative perspective on recent events.
Polemics against the “liability driven investment” approach by pension funds seems to have overlooked some fundamental points. The objective of a defined benefit scheme is to secure members’ benefits. On this measure, such funds have never been in better shape.
This story originally appeared on: Financial Times - Author:Abdallah Nauphal
