Standard Life launches new LDI funds

Standard Life Investments has launched a series of target liability bond pooled funds, which are designed to make customized liability-driven investment solutions more readily available to small and mid-size DB pension plans.

“Canadian pension plans continue to face significant short- and long-term pressures, including plan deficits, interest rate risks and longevity. But while the challenges are the same, each client is unique and needs a tailor-made solution,” said Claude Turcot, senior vice-president, quantitative management, with Standard Life Investments.

Each fund in the series is associated with a specific Canadian pension plan demographic profile representing different combinations of active employees and retirees. Plans can also tailor their allocation of assets within the series to reflect their own demographic profile and the duration of their liabilities. They can then establish the desired credit risk exposure.

The series launched today comprises a short-, mid- and long-term liability government bond pooled fund. A short- and mid-term corporate bond pooled fund will also be added to the series. The funds will be available initially through Standard Life Investments and Standard Life’s group savings and retirement quality and choice investment program.