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.
  • Our high-quality, duration- and curve-neutral portfolio construction approach is a natural fit for pension plans looking to reduce funded status volatility.
  • Our LDI Team is comprised of investment, client service, and actuarial professionals; together we develop solutions tailored to unique plan liabilities.
  • IR+M offers LDI solutions via funds and separate accounts, balancing efficiency of standard strategies and benchmarks with customization as needed.

 

The LDI Journey

  • We understand that LDI is an evolving process, and strategies transition over time as funded status, market conditions, and regulations change.
  • Our LDI philosophy is based on establishing a deep understanding of our client’s needs and risk preferences and then creating a solution that best meets those desired objectives, without unnecessary over complication.
  • As sponsors move through their LDI journeys, they often require increasingly sophisticated investment solutions to meet the changing risk profiles of their plans.
  • Clients and consultants choose us because of our ability to proactively and effectively partner across all stages of the LDI implementation process.

IR+M LDI SOLUTIONS

  • 125 LDI Portfolios
  • $30.7 billion in LDI AUM
  • Dedicated LDI Team
  • Separate accounts and private investment fund options
  • Ability to customize portfolios and benchmarks
  • Over 30-year proven track record managing LDI portfolios

For a PDF of this page, please click here.

For further information, please contact us here.

All information as of 3/31/22.

1Upon request by the client, futures may be utilized. 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.