2016 KPMG LDI Survey

2016 KPMG LDI Survey

We are proud to share with you the 2016 KPMG LDI survey which provides the most comprehensive review of the LDI market as it stands today.

Also on KPMG.com

powering head

Liability Driven Investment (LDI) is all about efficiently controlling risks in pension schemes. Headlines across 2015 were littered with coverage of struggling companies being hit with holes in their final salary pension schemes at the time they least needed it. Against that backdrop, it is no surprise that 2015 has been another excellent year for the LDI industry with strong growth in number of mandates and exposure.

Once again, we are proud to share with you the 2016 KPMG LDI survey which provides the most comprehensive review of the LDI market as it stands today.

The key highlights are as follows:

  • Total UK pension scheme exposure to LDI was £741 billion as at 31 December 2015, up from £658bn as at 31 December 2014 
  • There were 256 new mandates in 2015, bringing the total to 1,287 LDI mandates in the UK
  • Total UK pension scheme LDI growth by exposure of 13% over 2015
  • The growth in pooled LDI mandates continues apace, with 193 new pooled mandates in 2015 - total liabilities hedged in pooled mandates rose 41%
  • 75% of managers said legislation was their biggest concern citing Solvency II, Basel III and EMIR as potential restraints on liquidity.

 

 

Investment Strategy

Investment Strategy

Maximise current and long-term investment opportunities to make a genuine difference to your portfolio by challenging convention wisdom.

Connect with us

 

Request for proposal

 

Submit

KPMG’s new-look website

KPMG’s new-look website