Standard Life Investments has launched a suite of “liability aware” funds designed to help underfunded defined benefit (DB) pension schemes.
The range of funds is called ‘Integrated Liability Plus Solutions’ (ILPS) and the first fund to be rolled out is the Liability Aware Absolute Return III Fund managed by Jens Kroeske and Robert De Roecke.
Aiming to deliver outperformance of a DB scheme’s liabilities, the fund targets a return of cash plus 5% per year on a rolling three-year basis and uses a liability hedge overlay.
Standard Life Investments bolstered its pensions solutions team last summer with Dianne Ramsay, who joined from Schroders Investment Management where she was part of the UK strategic solutions team. Also, Mike Smaje joined from First Actuarial where he led the development of investment consulting.
“We launched ILPS to respond to the needs of underfunded schemes, providing an active and innovative pooled proposition which efficiently combines both components – generating returns and managing liabilities,” said Stephen Acheson, executive director, global strategic partnerships, at Standard Life Investments.
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