Long road to buyout: how to make the right investment choices

At our recent DB Forum in London, we heard how the LDI crisis has supercharged the focus on asset allocation and liquidity to get ready for the endgame, and how schemes have improved digital member communications.

Increased funding on the back of gilt yield rises has put some defined benefit (DB) pension schemes on a better footing to go to buy-in or buyout, while other schemes are still pursuing run-off for the foreseeable future.

But some challenges have come to light given the increased demand for buy-in and buyout following last year’s gilts and liability-driven investment (LDI) crisis, which will have implications for investment strategy.