More than one-third of global pension plan executives surveyed by SEI Investments are using liability-driven investing strategies.
The 37% using LDI this year is up from 20% among the same respondents in 2007.
Also, 26% said they were not considering an LDI approach in 2008, down from 33% last year, according to a report accompanying the survey Liability Driven Investing: What Has Changed Over The Last Year?
Among those using LDI, 79% said it was employed to control year-to-year volatility of funded status, unchanged from 2007, and 45% used it to control contribution and/or pension expense, down from 46% in 2007.
Respondents also differed on how to define LDI. Thirty-four percent said it was a portfolio designed to be risk-managed with respect to liabilities while 30% said it helped in the matching duration of assets to duration of liabilities.
SEI surveyed 160 executives in July and August overseeing pension plans ranging from $30 million to more than $5 billion in assets in the U.S., U.K., Canada, Hong Kong and the Netherlands.