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

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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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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DB dilemma: How do investment decisions affect stock returns?
Corporate plans that adopt an LDI framework intend to derisk over time, which can help stabilize the company’s balance sheet but also result in a negative earnings adjustment. In this paper, we share research on the effect derisking can have on the value of a company’s stock, including the relationship between valuations and the pension balance sheet/pension earnings, the impact of changes in ROA assumptions, and the effect of pension buyouts.
September 2019
DB dilemma: How do investment decisions affect stock returns?
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Amy Morse

LET’S TALK LDI

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

Amy Morse

Director, Pension Strategies