Corporate defined benefit plans

Drawing on broad multi-asset capabilities and deep LDI specialization, we work to address the evolving needs of corporate plans.

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 specialization with our firm’s multi-asset capabilities, including a full spectrum of investments for liability-matching and return-seeking allocations.

Visit our LDI page to meet our team, access award-winning content, and check out our video, “Everything you want to know about LDI in 30 minutes.”

featured research and implementation ideas

Fighting downgrade drag to reduce pension liability lag
Even robustly constructed liability benchmarks can struggle to keep pace with the liabilities they are meant to represent, and credit-rating downgrades of issuers in the benchmark are a primary culprit. In this paper, members of our LDI Team define the problem and offer ideas to help plan sponsors and LDI managers work together to fight back.
November 2020
Fighting downgrade drag to reduce pension liability lag
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Bill Cole
 CFA, CAIA
Louis Liu
 PhD, CFA, ASA, MAAA
Expanding the liability-hedging tool kit: A securitized solution?
Concerned about concentration risk, liquidity issues, and other factors that can affect long corporate bond allocations, derisking pension plans are seeking opportunities to diversify their liability-hedging allocations. In this paper, members of our LDI Team share their research on securitized assets as a potential alternative.
September 2020
Expanding the liability-hedging tool kit: A securitized solution?
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Setting ROAs for 2021: A guide for US public and corporate plans
How are pension plans adjusting their ROA assumptions? How do those assumptions line up with our long-term capital market assumptions? Find out in this annual update.
September 2020
Setting ROAs for 2021: A guide for US public and corporate plans
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Constructing next-generation return-seeking portfolios
As corporate DB plan sponsors finalize their liability-hedging allocations, a growing number are considering how to structure their return-seeking allocations. Members of our LDI Team propose a portfolio construction framework that emphasizes funded-ratio growth via a more stable path of returns.
March 2020
Constructing next-generation return-seeking portfolios
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STRIPS and synthetic overlays: A plan sponsor’s guide to the duration-extension decision
Many corporate defined benefit plans are contemplating strategies to increase the hedge ratios of their portfolios. There are multiple options to consider, in both the cash bond and derivatives markets. Here we looks at the pros and cons of each and the case for active management in implementation.
May 2019
STRIPS and synthetic overlays: A plan sponsor’s guide to the duration-extension decision
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Allan Levin
 CFA, FRM, FSA
Bill Cole
 CFA, CAIA
Cash-balance liabilities: A new investment framework
A cash-balance plan is very different from a traditional pension plan, and the differences can have a major impact on the interest-rate sensitivity of the plan’s liability. In this paper, we consider the implications of a cash-balance plan’s design and propose an investment framework focused on capital preservation, consistent income, and liquidity.
April 2019
Cash-balance liabilities: A new investment framework
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Louis Liu
 PhD, CFA, ASA, MAAA
Ryan Randolph

LET’S TALK LDI

To learn more about our LDI capabilities and offerings, please contact us.

Ryan Randolph

Corporate Pension Strategist