Liability Driven Investment

Liability Driven Investment (LDI) is a popular and core risk management tool for pension schemes and insurance companies.

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Liability Driven Investment (LDI) is a popular and core risk management tool for pension schemes and insurance companies. Over the last fifteen years it has proven to be a successful strategy for reducing risk and funding level volatility. The market has evolved over the years with BMO Global Asset Management, as a leading LDI manager, remaining at the forefront of these developments. We are an innovative, award winning LDI manager with over 580 clients offering the full range of liability management and balance sheet solutions.

Risk Disclaimer

The value of investments can go down as well as up as a result of market movements; changes in interest rates (and inflation expectations) and investors may get back less than the original amount invested. Gearing is used for investment purposes to obtain, increase or reduce exposure to an asset, index or investment. The use of gearing can enhance returns to investors in a rising market, but if the market falls the losses may be greater. 

BMO Low Dependency Solutions

Find out more about our accurate and tailored low dependency solutions, designed for maximum efficiency, minimum governance burden and with full ESG integration.

BMO Trustee Training Programme

We support new and experienced trustees with our series of interactive, live training sessions designed to help expand your investment knowledge through the year.

Upcoming events

LDI Investments Solutions Webinar

A quarterly webinar covering the latest LDI trends and market dynamics

11am Thursday 26th May 2022

Trustee Training Programme

Helping trustees navigate the complex landscape of pension scheme investing

2:30pm Thursday 23rd June 2022

LDI Investments Solutions Webinars

Our series looks to cover a plethora of topics within LDI. If you’d like to learn more about the series, click the button below.

BMO Global Asset Management have established a strong reputation for innovation and putting clients at the heart of its solutions. This is supported by our leading approach to managing portfolio risk and integrating ESG capabilities into our LDI solutions.

 
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“Liability Driven Investment (LDI) is about putting a scheme’s liabilities at the heart of its investment strategy, in order to minimise adverse movements in the funding ratio.”

Alex Soulsby, Head of Investment Solutions, EMEA

Leading innovation for over a decade

2003

1st Pension scheme LDI hedge

2013

1st transition fund for LDI

2016

1st Equity-linked Dynamic LDI fund

2011

1st Dynamic LDI hedging strategy

2014

1st transition from LDI fund to buy-out provider
2003
1st Pension scheme LDI hedge
2011
1st Dynamic LDI hedging strategy
2013
1st transition fund for LDI
2014
1st transition from LDI fund to buy-out provider
2016
1st Equity-linked Dynamic LDI fund
Past performance is not a guide to future performance

We commissioned a wide-ranging survey on LDI in conjunction with Mallowstreet, and asked some important questions. Are pension schemes satisfied with their LDI solutions? What issues are they encountering? And where can providers improve?

Read more or download the report now

LDI Insights

LDI
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12 min read
June 2022

UK Inflation Update

An update on the UK inflation market over the last three months.
LDI
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7 min read
June 2022

LDI Q2 webinar

The quarter we assess the state of the UK economy and discuss the outlook for corporate bonds.
LDI
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3 min read
May 2022

Synthetic ESG indices: Growing investor appetite drives innovation

Simon Bentley looks at ESG and passive synthetic equity exposure
LDI
A woman sits at the table with an open laptop and takes notes
8 min read
May 2022

Q1 2022 LDI Survey

This month we feature our quarterly LDI Survey.
LDI
Young successful trader or businessman in formal wear and eyeglasses sitting at modern office in front of computer screens with charts and reading market report
8 min read
April 2022

Q1 2022 repo update

This month we feature our quarterly repo update.
LDI
A woman is speaking at a meeting in front of a group of coworkers
9 min read
March 2022

LDI, inflation hedges and counterparty engagement

Nina Roth and Kazmen Lian discuss counterparty engagement and inflation hedging.