By Paulina Pielichata
Source: Pensions & Investments

Pension fund trustees should put in place appropriate buffers to manage any leveraged liability-driven investment arrangements, the U.K. Pensions Regulator said Monday.

In a new guidance, which was published following the September LDI crisis, the regulator said investors must also include an operational buffer specific to the LDI arrangement to manage day-to-day changes, in addition to the 250 basis points minimum.

Setting the right buffer level is essential so the fund can operate in the normal way even where there are sharp market movements, TPR said in a news release.

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