STOXX Ltd., the operator of Deutsche Börse Group’s index business and a global provider of innovative and tradable index concepts, has launched the new iSTOXX RiskFirst LDI index family as of 23 April 2018. This new offering has been jointly developed with RiskFirst, the UK’s leading provider of risk analytics and reporting solutions to the defined benefit pensions market. STOXX will calculate a range of indices based on 12 profiles, capturing member type, duration, type of indexation (pre- and post-retirement), interest rate and inflation sensitivity and tax-free cash component of typical UK pension schemes. The indices combine STOXX’s real-time fixed-income index calculation capabilities with a unique set of data provided by RiskFirst.
Matthew Seymour, CEO of RiskFirst, commented: “The set of indices we have developed in
partnership with STOXX are a major leap forward, providing improved governance and increased
accuracy in a cost-efficient solution. PFaroe is rapidly becoming an industry standard for the
modelling of pension plans and therefore offers us unique insight into the behaviour of pension plan
cash flow profiles at a very granular level. When combined with STOXX’s extensive experience in
designing innovative and objective investment benchmarks, the result is a set of indices that deliver
great value to UK pension plans.”
“With our new LDI index offering we are addressing the challenges of a £1 trillion market by
providing independent benchmarks for liability-driven investments. Our LDI indices will support
pension scheme trustees and consultants in their efforts to select, monitor and challenge LDI
managers. This is further proof of our innovative approach to tackle market inefficiencies with
transparent investment tools,” said Matteo Andreetto, CEO of STOXX.