LDI provider Insight Investment rocked as assets slump 28%
One of the biggest players in last year's UK gilt market crisis has revealed a big drop in assets under management.
Insight Investment, which provides liability driven investment products (LDIs), posted a 28 per cent fall in assets from 767.6billion to 555.2billion in 2022 following the chaos last September.
The company blamed the steep decline on Autumn's mini-Budget when Liz Truss's government announced a 45billion package of unfunded tax cuts.
A crisis quickly engulfed the sector, which is dominated by Insight, as well as rivals BlackRock, Schroders and Legal & General, with UK gilt prices tumbling and yields soaring on the prospect of higher borrowing costs.
In the results, which were posted in April, Insight said: 'The reduction in assets under management was a result of negative market movements which reduced the liabilities for our pensions clients within our LDI book of business.