Defined benefit plans

We have worked with defined benefit (DB) plan sponsors for more than 40 years, and today we manage money for hundreds of corporate and public plans worldwide.

DIFFERENT PATHS FOR CORPORATE AND PUBLIC PLANS

The investment practices of corporate and public plans have evolved in recent years. Corporate plans are increasingly focused on liability-driven investing (LDI), while many public plans are in return-seeking mode. We have tailored our investment capabilities to meet each of these distinct needs.

PARTNERING WITH CORPORATE PLANS ON LDI SOLUTIONS

Each corporate plan has unique challenges. Our dedicated LDI team of actuaries, multi-asset strategists and fixed income investors consults with plans on the design and implementation of plan-specific solutions, bringing to bear innovative research and investment ideas.

We combine this deep LDI specialisation with our firm’s multi-asset capabilities, including a full spectrum of investments for liability-matching and return-seeking allocations.

Learn more about our LDI capabilities.

Amy Trainor

Our framework seeks balanced risk exposures to assets expected to perform well in a variety of economic scenarios, including ‘bridge strategies’ that may offer downside risk mitigation when growth is challenged but still participate in rising equity markets.

Amy Trainor, FSA, EA, Multi-Asset Strategist

HELPING PUBLIC PLANS CLOSE THE RETURN GAP

Many public plans have return targets that pose a high hurdle when compared with capital market return expectations. We think plans can address this gap through a “stepping stones” approach: making incremental changes that can potentially improve returns without significantly increasing risk. Examples include:

  • Making more effective use of active strategies
  • Investing thematically to take advantage of secular trends
  • Mitigating downside risk to help smooth the path to a return target

To help public plans implement the right steps for their needs, we draw on our firm’s multi-asset research and investment solutions. Learn more about our  stepping stones  approach.

Adam Berger

The beauty of the “stepping stones” approach is that there is no single predetermined path. Plans can seek to improve returns by choosing a subset of steps that are in sync with their investment beliefs and institutional priorities.

Adam Berger, CFA, Multi-Asset Strategist

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In the wake of severe credit-market dislocations earlier this year, Fixed Income Portfolio Manager Mahmoud El-Shaer shares his thoughts on the growing importance of credit research in a still-uncertain environment.
Archived insights remain available on the site. Please consider the publish date while reading these older insights.
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