Liability Driven Investing

We take a practical approach to liability driven investing (LDI) by working with clients and consultants to help define plan sponsor’s objectives, develop solutions, and ultimately build prudent and cost-effective portfolios. To achieve this, we combine the liability-hedging expertise of our LDI team with our traditional high-quality, bottom-up investment philosophy, and provide seamless guidance through all stages of a plan sponsor’s LDI journey.

A History in LDI

  • Since our inception in 1987, we have provided practical solutions for plan sponsors seeking fixed income exposure within their pension plans.
  • We believe our approach to constructing high-quality duration and curve neutral portfolios fits naturally for pension plans looking to better align assets with pension liabilities.
  • Our LDI team joins experienced members of our investment, client service and actuarial teams to develop solutions tailored to the unique plan liabilities.
  • LDI solutions include separate-account and private investment fund options, ranging from standard benchmarks to fully customized offerings.

The LDI Journey

  • As sponsors move through the LDI journey, they often require increasingly sophisticated investment solutions to meet the changing risk profiles of their plans.
  • Sponsors may transition their portfolios over time or incorporate other factors, such as funded status, market conditions or regulations affecting the pension plan.
  • At each stage of the process, we take a practical approach, balancing the need for greater sophistication against the potential for additional costs.
  • To achieve success, we believe it is key to partner with managers that possess a range of LDI capabilities. At IR+M we work with clients through all stages of their LDI journeys.

IR+M Long Duration and LDI Management

  • 77 LDI mandates
  • $17.1 billion in LDI AUM
  • Dedicated LDI Team
  • Separate accounts and private investment fund options
  • Ability to customize portfolios/benchmarks
  • 25+ years proven track record managing long duration portfolios

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As of 3/31/18

The views contained in this report are those of IR+M and are based on information obtained by IR+M from sources that are believed to be reliable. This report is for informational purposes only and is not intended to provide specific advice, recommendations for, or projected returns of any particular IR+M product. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission from Income Research & Management.