SEI Investment’s 7th Annual Global Liability Driven Investing Poll shows that 57% of corporate pension funds surveyed in the U.S., Canada and U.K. indicated the use of an LDI strategy in their portfolios in 2013. That number is unchanged from a year earlier, despite the fact that equities have rallied throughout 2013, while bond yields rose significantly in response to the Fed’s quantitative easing announcement in the spring.
SEI notes that while the use of LDI remained steady from the prior year, primary goals for using the strategies have evolved. The No. 1 reason – controlling funded status volatility – remained the same, but investors cited improving funding levels and progress toward termination as the second and third most popular goals for LDI in 2013, after ranking fourth and fifth, respectively, in 2012.