Liability-driven investment funds in the defined benefit pension scheme system

Company

Employers promise to pay their staff

a pension

Defined Benefit Pension Scheme

A workplace pension based on salary and term of employment, rather than how much is paid in. These schemes are increasingly rare

Asset Manager

Appointed by pension scheme trustees to manage assets on their behalf

Liability Driven Investment Fund

A type of fund used by the asset manager to invest the pension scheme's money

Funds can invest

in a variety of assets

such as ...

Equities

Bonds

Gilts

Derivatives

Company

Employers promise to pay their staff

a pension

Defined Benefit Pension Scheme

A workplace pension based on salary and term of employment, rather than how much is paid in. These schemes are increasingly rare

Asset Manager

Appointed by pension scheme trustees to manage assets on their behalf

Liability Driven Investment Fund

A type of fund used by the asset manager to invest the pension scheme's money

Funds can invest

in a variety of assets

such as ...

Equities

Bonds

Gilts

Derivatives