Half of pension plans in the U.S., U.K. and the Netherlands surveyed by SEI used LDI strategies as of Oct. 31, according to a Global Quick Poll by the firm.
Of those using liability-driven investing, 75% said they used long-duration bonds, 43% short-term cash management; 36% emerging markets debt; and 24% interest-rate derivatives.
“While interest in liability-driven strategies remains high, the reality is that the timing of implementations will differ from one organization to the next,” Jon Waite, director of investment management advice and chief actuary of SEI's Institutional Group, said in a news release on the survey's findings. “There are often numerous moving parts within these complex strategies, and pension plan sponsors need their providers to deliver expertise and guidance. At a time when funding levels are low, pension plan sponsors need insight around how these strategies can be implemented now and in the future to best protect the plan's funded status.”
The firm surveyed 110 executives at pension plans with assets ranging from $30 million to $5 billion. None of the participants was an SEI client.