Lack of Pension Staff a Barrier For LDI

Cole: many pension funds don't have enough in-house expertise.

Share:
  • Facebook
  • Twitter
  • Print
  • Email
  • Comment

Jim ColeLiability-driven investing (LDI) has been a tough sell in Canada according to some delegates at the 2011 Risk Management Conference in Muskoka, Ontario – but that doesn’t mean LDI strategies are on the wane. According to one of our speakers, Jim Cole, vice-president, Phillips, Hager & North Investment Management Ltd, plan sponsors now accept that LDI approaches are here. However, they do face a couple of big challenges when it comes to implementation.

We interviewed Cole during the conference and he pointed out that small- to mid-sized plans have a hard time embracing LDI simply because many plans don’t have full-time dedicated investment staff. Since these strategies are complex, a lack of expertise in-house makes it difficult to adopt the management and processes needed to make them work.

Watch the entire interview with Cole by clicking on the image and going to BCTV.


Add a Comment

Have your say on this topic! Comments that are thought to be disrespectful or offensive may be removed by our Canadian Investment Review admins. Thanks!

Transcontinental Media G.P.