Liability Driven Investment

Dutch pension schemes embraced risk management long before the UK, and are some of the most sophisticated investors in the world. Cardano was purpose-built to meet these advanced pension schemes requirements, using innovative investment solutions, and remains one of the largest risk managers in the Netherlands.

Liability hedging

We build bespoke liability driven investment portfolios to help manage the interest rate and inflation risks inherent in the liabilities. We work with your actuaries to understand the structure of the pension scheme and likely cash-flows. From here we build the portfolio which is managed in an ongoing basis with changes made to reflect the changes in the liability profile.

The benefit of having in-house capabilities:

Flexibility

Our size enables us to change the way we hedge without having to go through large implementation programmes across several clients. This should ensure low transaction costs and allow more flexibility when making future changes.

Accountability

Simple, straight-forward accountability embedded in the LDI process through one relationship means that there is less opportunity for errors and, therefore, unintended losses to occur.

Responsiveness

As an in-house manager we know what is happening daily, with all market movements. And can take a holistic view on changes to the portfolio on both the investment and the LDI fronts with immediate effect.

Advice and implementation

We ensure clients receive the most up-to-date and relevant advice on the part  of their portfolio that often represents the highest market exposure. We are able  to negotiate all derivative documentation on behalf of clients, simplifying the process and helping clients avoid additional legal and consultant fees.

Learn more

We are very happy to offer training workshops to explain in more detail  how LDI can benefit your pension scheme.