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    Risk management

    Risk management

    Managing all aspects of risk across your portfolio is key. Our solutions cover risk factors including liability risks for pension schemes, as well as for multiple asset classes including rates, equity, credit, inflation and currency.

    A leading risk manager

    €503.2bn

    assets managed by solutions group globally1

    2004

    Year Insight launched its LDI capability

    Leader

    Insight is one of the largest managers of LDI based on worldwide assets2

    64

    LDI investment professionals3

    A specialist in LDI

    Insight’s leadership in LDI is built on years of experience helping a wide range of pension schemes, large and small, to develop and implement robust long-term funding strategies focused on their endgame objectives. Over the years we have helped our clients to evolve their approach in response to changing circumstances and market conditions.

    We have long experience and expertise in managing the key liability risks for defined benefit pension schemes, using both pooled and segregated LDI solutions.

    Our hedge management approach aims to ensure our LDI solutions remain efficient and cost-effective in a very dynamic market and regulatory environment.

    Insight's LDI platform has risk protection mechanisms which have helped to protect our clients through stressed market events.

    The next biggest risk for UK defined benefit pension schemes, after interest rates and inflation, is longevity risk.

    Insight has extended the LDI toolkit by providing a platform through which small and large pension schemes can efficiently transfer longevity risk to the reinsurance market.

    Source: Club Vita, April 2021. Based from information in the Pension Regulator’s Scheme Funding Analysis 2020 & 2010 and the PPF’s Purple Books, approximately converted. Figures show the drivers that would increase the deficit in the average of the worst 5% (1 in 20) outcomes

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    Over the last few years, more of our pension scheme clients are turning towards integrated risk-management solutions specifically designed to help them reach their funding objectives with increased investment efficiency, lower governance and greater resilience.

    In partnering with pension schemes to build an integrated solution, we aim to help manage the three main sources of risk: liability risks, return risks and cashflow risks.

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    Managing exposures through derivatives

    Access a broad array of passive and active derivatives strategies to add value to your portfolio.

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    Downside protection

    Downside protection

    Strategies can be constructed using derivatives to help protect against the impact of downturns in equity markets, while also maintaining some degree of exposure to upside movements.

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    Release capital

    Release capital

    Derivatives require only a portion of total market exposure to be set aside initially, allowing you to gain desired exposures while leaving assets free for other purposes.

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    Modify asset profiles efficiently

    Modify asset profiles efficiently

    Derivatives can help you adjust your assets on an ongoing basis to better reflect your liabilities more swiftly and cheaply than through trading physical assets.

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    Manage overall exposure

    Manage overall exposure

    Derivatives can help target and modify total exposures across multiple portfolios – even if they are managed by different asset managers.

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