Show Notes: In Episode 53, we cross the mote to the other side of the balance sheet and discuss liability management by pension funds, popularized by the term Liability Driven Investing (LDI).  We are joined by Bill Chinery, an actuary and former asset management executive with pension fund expertise as well as Frederic Kibrite, an asset-liability specialist from TD Asset Management.  Bill and Fred discuss the evolution of LDI from the early days of pension fund management in the mid 20th century all the way to the celebrated blow up of the strategy in the UK in 2022 that ultimately cost Prime Minister Liz Truss her job.  Bill discusses Canada's celebrated pension system which, despite its strengths, cannot fight inevitable demographic challenges caused by lower fertility rates and an aging populations.  Fred finishes up with advice to governments in dealing with pension fund demographics – act early!

Chapter Headings: 

2:20 - Early Days of LDI

6:24 - LDI Makes Headlines in the UK

12:30 - Tony Blair's Solution for UK Corporate Pensions

24:05 - Capacity Limitations – What Happened to RRBs?

30:00 - Celebrating Canadian Pension Plans

37:27 - Demographic Challenges

39:51 - Macron's Political Gamble to Raise Retirement Age

Disclaimer: This podcast should not be copied, distributed, published or reproduced, in whole or in part. The information contained in this recording was obtained from publicly available sources, has not been independently verified by TD Securities, may not be current, and TD Securities has no obligation to provide any updates or changes. All price references and market forecasts are as of the date of recording. The views and opinions expressed in this podcast are not necessarily those of TD Securities and may differ from the views and opinions of other departments or divisions of TD Securities and its affiliates. TD Securities is not providing any financial, economic, legal, accounting, or tax advice or recommendations in this podcast. The information contained in this podcast does not constitute investment advice or an offer to buy or sell securities or any other product and should not be relied upon to evaluate any potential transaction. Neither TD Securities nor any of its affiliates makes any representation or warranty, express or implied, as to the accuracy or completeness of the statements or any information contained in this podcast and any liability therefore (including in respect of direct, indirect or consequential loss or damage) is expressly disclaimed.

For relevant disclosures, visit: tdsecurities.com/ca/en/legal#PodcastDisclosure. To learn more about TD Securities, visit us at tdsecurities.com or follow us on LinkedIn @tdsecurities.

Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.