TPT Investment Management (TPTIM), part of TPT Retirement Solutions, has launched a new Liability Driven Investment (LDI) solution for UK defined benefit pension schemes, in partnership with Insight Investment.
The solution supports long-term funding strategies and assists schemes in managing liability risk, returns, and liquidity. It is accessible through TPTIM’s fiduciary management service. It provides cost savings through consolidation and is adaptable to the requirements of different schemes.
It integrates a liquid asset portfolio, collateral management, and non-LDI assets, such as corporate bonds. TPTIM can adjust the ratio of liquid assets to LDI as needed.
The method avoids capital lock-up by guaranteeing close curve matching, capital efficiency, and flexibility in fund management. It additionally offers automated reporting and daily monitoring to enhance portfolio management.
TPT Investment Management head of investment Peter Smith says: “We’re excited to launch our new best-in-class LDI solution with Insight Investment, which brought an innovative and collaborative spirit to the development of this new solution for DB Schemes. As a benefit of our scale and consolidation, we believe it provides an excellent value proposition that would not necessarily be available to smaller, stand-alone schemes.
“Our new LDI solution is bespoke and can be tailored to the needs and risk profiles of individual schemes to manage their specific liability characteristics, return requirements and liquidity needs. Risk management is enhanced through industry-leading data and reporting. The experience of our investment team and alignment of interests with our ownership will allow us to continue to pass the benefits of our scale onto other trustees and schemes.”
Insight Investment head of the client solutions group Serkan Bektas, says: “We are very pleased to be working with TPTIM on this critical component of its fiduciary management service. The teams at Insight and TPTIM have built a strong partnership, working together on a rigorous design process which has resulted in the creation of bespoke hedges for TPTIM’s individual schemes. The Insight team took care to ensure the overall solution is focused on delivering the outcomes that scheme members need, with attention paid to efficient management of costs and the implementation of a straightforward framework for monitoring and execution.”
