Liability Driven Investing

Philosophy

Our core philosophy is that an Liability Driven Investing mandate’s primary focus should be on de-risking. We believe that it is more efficient to allocate a scheme’s alpha risk budget towards mandates with the largest opportunity sets.

Our approach is therefore “passive-plus” whereby we will look to ensure that interest rate and inflation hedges are positioned as effectively as possible both initially and on an on-going basis.

We will add value by focussing on the relative value between government bonds and swaps in both nominal rates and inflation space and also on managing physical bond holdings to react to relative value opportunities across the curve.

Product offering

We recognize that all Liability Driven Investing clients have different characteristics and we are happy to be flexible in terms of the range of solutions implemented (e.g. “delta-one” hedging, swaption strategies, equity option or synthetic equity replication strategies).

Experience

Our heritage of managing de-risking strategies extends back to 1999.

Since then, we have designed, executed and managed de-risking mandates on behalf of Pension and Insurance clients, ranging from simple hedging to complex, innovative de-risking solutions.

Aberdeen has identified Liability Driven Investing as a key area of future growth. In recent years we have increased the size of our LDI team, adding experienced and highly qualified personnel ahead of potential growth in our external client base.

We have also added to the existing LDI client service team to ensure we can forge strong, meaningful partnerships with our existing and prospective clients.

As such, we are extremely well positioned to act quickly to provide prospective clients with a bespoke, optimal de-risking solution and offer an innovative and proactive partnership to meet their requirements as they evolve.