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Quarterly figures, gathered from derivatives trading desks, showed interest rate liability hedging grew an additional 9%, which the firm put down to an increase in funding levels boosting risk-reduction.The manager said pension funds’ previous interest in inflation hedging had led them to add interest rate mechanisms to create real rate hedges.Inflation hedging decreased for the second quarter running. However, even interest rate hedging remains below a record of £23.4bn set in the third quarter of 2013.KPMG’s research, brought together using figures from LDI managers, showed growth in the use of swaptions within LDI strategies, albeit to a limited audience, generally larger schemes.Allocations grew by £9.8bn over 2013, but the number of pension funds utilising swaptions was still only 25.Other synthetic return generating approaches were not as popular, with some strategies seeing a decline in allocations.The use of equity options within LDI strategies fell, with small growth in the use of futures and total return swaps in equities. However, the use of these strategies remained limited.As with swaptions, the concept of LDI also remained fairly limited and under-utilised by schemes smaller than £50m.Some 21% of the 825 mandates seen to date have been used by schemes of this size.KPMG said there was not significant appetite for LDI strategies, despite some allocations from smaller pension schemes, .“There appears to be plenty of opportunity for small schemes to access well structured and good value pooled vehicles,” the KPMG report said.“It seems the demand from small schemes is much less than from larger schemes.”With regard to implementation, schemes larger than £500m implemented segregated and bespoke mandates from managers, while those between £50m and £500m have appetite for this and pooled mandates.KPMG’s report also predicted further growth in the LDI market through 2014, as funding levels continue to improve for UK schemes.Barry Jones, head of LDI at KPMG, added: “With many pension schemes looking to lock in the profits following another bumper year for equities, we’d expect another wave of de-risking in 2014, and the LDI market is likely to be the primary recipient.” The UK liability-driven investment (LDI) market continued to grow in 2013 as the value of allocated assets broke £500bn (€628bn), with a 21% increase in the number of mandates, research shows.Annual research from consultancy KPMG showed the level of assets from pension funds reached £517bn by the end of last year, an addition of £74bn.During 2013, in an alteration from the year previous, growth in liability hedging was shared equally between inflation risk and interest rate risk, compared with 2012, where inflation caused more concern to schemes.This trend has continued into 2014, according to additional research from asset manager F&C.
Facebook Twitter Google+ Published on October 3, 2013 at 1:02 am Contact Eric: firstname.lastname@example.org In Friday’s exhibition game against Guelph, Syracuse’s offense seemed to be a bit unorganized. Players threw pucks at the net, with little to no semblance of order. “The girls were just trying to get shots on net,” head coach Paul Flanagan said. “It was kind of a point of emphasis to just get shots on net to get some rebounds and get some ugly ones.” The Orange showed its youth against University of Guelph, and Flanagan said the team will improve with time. SU opens the season on Friday at 7 p.m. at Northeastern and follows it with a 2 p.m. matchup with New Hampshire on Saturday. Flanagan expects that as the season goes along, more and more structured plays will take form.“It is a work in progress,” Flanagan said, “I would like to think some of the veterans will be a little more selective than just throwing it on net. I still understand if you’re a rookie just getting a shot on net until they get that confidence.”AdvertisementThis is placeholder textAgainst Guelph, Syracuse registered 34 shots but only tallied three goals. This, Flanagan says, may be a result from the lack of power play success. “We spent a lot of time on the power play,” Flanagan said “Just kind of breaking things down. Trying to keep it basic and moving the puck quickly.”Syracuse is coming off of a 20-15-1 record last year, but has six freshman forwards this season. So, the Orange will rely heavily on veterans such as captain Margot Scharfe and winger Nicole Ferarra, Flanagan said.In Friday’s matchup, Syracuse will face Northeastern, a team that went 23-11-2 on the season and made it all the way to the Women’s Hockey East Association title game. The Huskies have also cruised to four straight winning seasons, meaning it will be a tough matchup for sure, Scharfe said.In its last three matchups against Northeastern, Syracuse is winless. The Orange was outscored 14-8 and lost the last two games 5-2. SU’s other opponent, New Hampshire, is a less decorated program, but the Orange will still need to find better chances, something that the team struggled with last week, Flanagan said.Neutral zone play is key to getting out in transition, which is one thing he wants to work on heavily in practice to create breakaways and odd man rushes to the net. These breakaways on offense can help Syracuse get off to a quick start to the season.“I think if we are smart on a breakout, we can find the stretch person,” Ferarra said. “Breakaways will definitely be a possibility.”Although Syracuse has never beaten Northeastern, there is no shortage of confidence brewing in the locker room. “I think they can be a little bit overconfident when it comes to playing us,” Scharfe said, “so I think we can be pretty good underdogs this weekend.” Comments