Barclays Global Investors Ltd (BGI) has launched a new suite of sixteen pooled Liability Driven Investment (LDI) funds.<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />
This new product suite, called BGI Liability Solutions Funds (<?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />Dublin), complements the first suite launched earlier this year in March, and increases the scope to achieve additional performance as well as matching liabilities.
The product set comprises three groups of pooled funds:
These three groups of pooled funds offer pension funds comprehensive and highly flexible risk management and investment tools. Within the framework of the BGI Liability Solutions Funds (Dublin), pension schemes will be able to create bespoke portfolio solutions, which provide interest rate and inflation sensitivity more in line with their liabilities while at the same time allowing schemes to spend risk to achieve the best return for that risk.
"We are already managing over GBP 2bn of liability mandates in pooled funds, a clear indication that these products have struck a chord with investors," said BGI Managing Director, Hugh Cutler. "In recognition of the fact that on the face of it, LDI solutions appear to be quite complex, we have already run a series of very successful educational forums with clients and in September we will be hosting a series of LDI workshops around the country."
BGI Ltd has offered LDI solutions to pension funds on a segregated basis for five years, and now manage a total of GBP 16bn in LDI mandates.
"BGI's quantitative approach to investing is a natural fit when managing LDI solutions -- our clients find that very reassuring," said Tarik Ben-Saud, Head of LDI Solutions at BGI.