More than half of pension funds are using a liability driven investment strategy to cut risk, according to SEI's 7th annual Global LDI poll.
Of the 130 companies polled in the U.K., Canada and the U.S., 57 percent said they employed such a method, which often relies on bonds, the same as in 2012. In the U.S., 71 percent of respondents said they use the derisking strategy.
Those plans that used other investment strategies cited underfunding, low interest rates and reluctance to give up investment returns as reasons for staying away from LDI.
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