The Derivative Solutions Division is comprised of liability driven investment ("LDI") and structured equity, which are offered to institutional investors, currently UK DB pension schemes.
LDI is the generic name for the methods investors use to reduce the risks they face in relation to changes in the value of their liabilities. Generally this involves the use of interest rate and inflation swaps, supported by collateral management. The Group offers a bespoke approach that is affordable to relatively small institutional investors.
Structured equity involves the use of equity options to create tailored exposure to equity markets.