Martin Steward: Trigger unhappy
When does a tactical loosening of a strategy become a panic? And when does panic start to undermine the strategy itself? If your strategy is liability-driven investing (LDI), you might well ask. It wasn’t long ago that plummeting yields were trumpeted as the vindication of LDI. At the end of 2009, celebrating the sixth anniversary of the pioneering Friends Provident Pension Scheme/Merrill Lynch transaction, Redington observed that UK 30-year real yields had fallen 126bps in that time. Around the same time Lane Clark and Peacock compared the 10% loss on the average FTSE100 pension scheme’s assets with the 3% gain on Friends Provident’s during 2008.
This content is only available to IPE Members
Already an IPE Member? Sign in here
Unlock your IPE Membership Package
For unlimited access to IPE’s industry-leading market intelligence, comprising news, data and long-form content on European pensions and institutional investment.
What type of organisation do you work for?
- Secure online payment
- Free European delivery
- Best value for price
IPE Membership
IPE has created a suite of products and services for Europe’s institutional investment and pensions community.
Premium content
Pension fund interviews,
country analysis and data
country analysis and data
Opinion and analysis
Asset classes
and strategies in depth
and strategies in depth
IPE covers a good variety of very current and relevant topics. It is good to read the high-level, independent and objective perspectives from pension funds in other European countries; many of them are dealing with the same issues as we are, so it is interesting to learn from their experiences, especially when they are ahead of where we are on the curve.
Copyright © 1997–2025 IPE International Publishers Limited, Registered in England, Reg No. 3233596, VAT No. 685 1784 92. Registered Office: 1 Kentish Buildings, 125 Borough High Street, London SE1 1NP