Risk Management
Segregated LDI mandates: comparing to the best pooled LDI funds can do
The benefits of a segregated approach to LDI – but what does this mean in practice? We have considered a comparison of segregated versus pooled funds by way of two examples: conventional LDI & Equity-linked LDI
Read MoreSegregated LDI mandates: the ability to tailor
Many people will point to the key benefits of a segregated LDI mandate as being the accuracy that comes from knowing the exact liabilities that a pension fund has. At River and Mercantile, we believe it is a side benefit.
Read MoreSegregated LDI mandates: additional tools
There are tools available in a segregated mandate that are not available if LDI is implemented via pooled funds. Access to some of these tools can make it easier to address some of the challenges that pension schemes face.
Read MoreHow to increase equity market exposure with guaranteed protection
What is structured equity? An investment in a portfolio of equity options traded with a bank, which allows the investor to tailor their exposure, to provide a contractually guaranteed payoff profile.
Read MoreIt’s just plain efficiency
The tangible economic benefits of segregated mandates – a segregated approach is the most efficient way to implement derivatives, and this efficiency can translate into material benefits for the pension scheme.
Read MoreThe benefits of pooled LDI funds that do and don’t exist
We believe that segregated mandates offer some very significant benefits for pension schemes, which is why at River and Mercantile we only offer our clients segregated LDI.
Read MoreYour scheme is bespoke… why isn’t your LDI solution?
We believe all schemes, irrespective of size, should be able to access the best ideas and innovations without constraint. That’s why all of our clients have access to segregated LDI mandates and the associated benefits.
Read MoreOn-Risk vs. Off-Risk: Why do we still compromise?
It has been noted that setting a liability hedging target is often a trade-off between risk management and return generation – but do we need to compromise?
Read MoreStructured Equity: The icing on the LDI cake?
The juggling act between return generation and risk management can lead to a persistent challenge for many trustees and Sponsoring Employers today, particularly in the wake of market volatility.
Read MoreCDI vs LDI – can you have your cake and eat it too?
The impact of COVID-19 means pension scheme funding levels have fallen, covenants have deteriorated, and liquidity requirements have increased. So, schemes need return, risk management and cash more than ever.
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