Hugo James, CEO of PensionsFirst Capital, explains why LDI in long-dated assets bears fruit in this month’s Pensions World

In the latest issue of Pensions World, Moorgate client PensionsFirst Capital’s CEO Hugo James discusses how pension funds can overcome the barriers to implementing dynamic liability-driven investment (LDI) strategies, in order to match liabilities with the stable inflation-linked cashflows generated by long-dated assets. Taking this approach also offers pension funds highly marketable assets for a future endgame buyout.

Long-dated assets, such as infrastructure or solar, can provide better yields than other liability-matching investments, such as gilts, whilst also offering further portfolio diversification benefits. Furthermore, these assets are also a potentially more cost-effective and less risky way for funds to extend duration when compared to using swaps or other OTC products.

To read a pdf of Hugo’s full article in Pensions World, please click here

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