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
After hitting derisking triggers in 2021, many plans are looking ahead to the next trigger and thinking about how expensive the investment-grade credit market is currently. LDI Team members Connor Fitzgerald and Bill Cole offer metrics to aid the decision-making process and consider potential alternatives.
Archived insights remain available on the site. Please consider the publish date while reading these older insights.
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November 2021
LDI Alert —
Time to buy credit or Treasuries? Ideas on calibrating the trade-off
Time to buy credit or Treasuries? Ideas on calibrating the trade-off
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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.
Archived insights remain available on the site. Please consider the publish date while reading these older insights.
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November 2021
Setting ROAs for 2022: A guide for US corporate and public plans
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As defined benefit plans contemplate the best path to their eventual "end state," members of our LDI team update their liability-hedging research with a blend of traditional benchmark ideas and new opportunities to capitalize on changing market conditions and a broader investment universe.
Archived insights remain available on the site. Please consider the publish date while reading these older insights.
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October 2021
The evolution of derisking: Assessing new and time-tested liability-hedging ideas
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It's been a long time since anyone worried about inflation getting off the ground. That seems to be changing, and for corporate plans, we think the risk is greater for return-seeking portfolios than liability-hedging portfolios. But we also believe that falling inflation is more worrisome than rising inflation. In this paper, we consider the implications and the potential role of different return-seeking allocations in preparing for various inflation outcomes.
Archived insights remain available on the site. Please consider the publish date while reading these older insights.
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June 2021
Inflation’s big comeback: Should corporate pensions care?
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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.
Archived insights remain available on the site. Please consider the publish date while reading these older insights.
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June 2021
Cash-balance liabilities: A new investment framework
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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.
Archived insights remain available on the site. Please consider the publish date while reading these older insights.
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March 2021
Constructing next-generation return-seeking portfolios
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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.
Archived insights remain available on the site. Please consider the publish date while reading these older insights.
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November 2020
Fighting downgrade drag to reduce pension liability lag
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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.
Archived insights remain available on the site. Please consider the publish date while reading these older insights.
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September 2020
Expanding the liability-hedging tool kit: A securitized solution?
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