iSTOXX RiskFirst LDI Indices to be launched on April 23

iSTOXX RiskFirst LDI Indices to be launched on April 23

Author: Chrissie Frank

RiskFirst and STOXX address the challenges of a £1 trillion market by providing independent benchmarks for liability-driven investing

iSTOXX Risk First LDI Indices can help pension trustees to address the challenges posed by liability-driven investing by improving manager monitoring and portfolio construction.


  • The LDI indices serve as an independent point of reference for the UK’s defined benefit pension industry.
  • The indices function as flexible, investable building blocks for LDI portfolios.
  • A sophisticated methodology allows pension schemes to better match assets and liabilities over time.
  • The indices support pension scheme trustees and advisors in their efforts to select, monitor and challenge LDI managers.


  • STOXX, in collaboration with RiskFirst, calculates a range of LDI indices that match a wide selection of UK pension scheme liability profiles.
  • The indices track the performance of corporate and government bonds denominated in GBP.
  • Four different sets of indices are provided: nominal bond indices, inflation-linked bond indices, blended indices and non-gilt indices.
  • The indices are constructed using a proprietary cash-flow matching model that incorporates best-in-class LDI techniques.
  • Certain key features of LDI portfolio construction, such as rebalancing between real and nominal exposure, are embedded in the index to offer a truly differentiated LDI solution.
  • The indices combine STOXX’s real-time fixed income index calculation capabilities with a unique set of data provided by RiskFirst.

The unspoken challenges

Current LDI practices pose a significant risk for pension trustees. While existing approaches do manage interest rate and inflation risks that UK pension schemes face, the absence of an independent and robust LDI benchmark creates a governance risk for trustees. Simple questions pose a challenge for trustees engaged in LDI:

  • How can trustees independently assess the performance of their LDI manager?
  • How can trustees compare the performance of one manager versus another?
  • How much risk is the LDI manager taking?
  • Who is responsible for creating the LDI benchmark?

Further information

For further information, including downloads, please click here.

You can download the press release here.


At the point when clients come first, awards follow

Additional Honors

Risk Market Technology Awards - 2022

Buy-side ALM Product of the year Moody’s Analytics


Risk Market Technology Awards - 2021

Buy-side ALM Product of the year Moody’s Analytics​


InsuranceERM Annual Awards 2021​

Economics Scenario Generator Software of the year​


Risk Market Technology Awards - 2020​

Buy-side ALM Product
of the year


InsuranceERM Annual Awards 2020 - Americas

Economics Scenario Generator Software of the year​