KPMG Liability Driven Investment Survey 2015

KPMG Liability Driven Investment Survey 2015

We are proud to share with you the 2015 KPMG LDI survey which provides the most comprehensive review of the LDI market as it stands today.

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2015 KPMG LDI Survey

From a standing start in the early 2000s, Liability Driven Investment (LDI) has grown rapidly to become one of the most important asset classes for UK Defined Benefit Pension Schemes. With £657 billion of liability hedged using LDI, this is arguably the largest asset exposure for DB schemes in the UK today.

Our 2015 LDI survey provides the most comprehensive review of the LDI market.

Key highlights:

  • The LDI market continues its extraordinary growth, smashing through the 1,000 mandate barrier with total notional liabilities hedged standing at £657bn
  • Of the 208 new mandates won in 2014, pooled mandates saw the largest growth, making up 151 of these. There are now more pooled LDI mandates than segregated mandates for the first time, albeit only making up 7.3% of total liabilities hedged
  • The ‘Big 3’ – LGIM, Insight and BlackRock – still dominate the LDI market capturing 85% of all the liabilities hedged
  • Small Schemes (below £50m) remain the least represented in the LDI market, both by liabilities hedged and number of mandates.

This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.

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