Liability-driven investing
Innovative LDI solutions and the ability to partner with plan sponsors at ALL stages of plan design and implementation
OUR EDGE IN LDI
Our client solutions draw on multi-asset skill within a distinctively collaborative environment
- Fixed income expertise in rates, credit, securitized, and derivative markets
- Deep fundamental credit research enhanced by equity investor perspectives
- Specialist trading resources to help support liquidity needs
- Actuaries who translate liability cash flows into practical investment ideas
- Experience managing full pension solutions and implementing glidepath approaches
LDI Alerts
Faced with extreme market volatility in the early months of 2022, what can corporate DB plan sponsors do to potentially provide stability in their portfolios while still pursuing longer-term funding aspirations? Multi-Asset Strategist Amy Trainor offers thoughts on rerisking, hedge ratios, and liability-hedging and return-seeking allocations.
Archived insights remain available on the site. Please consider the publish date while reading these older insights.
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March 2022
LDI Alert: Preserving funded-ratio stability in volatile markets
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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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With a growing number of derisking plans seeking exposure to intermediate credit, members of our LDI team highlight some notable differences between the intermediate and long-duration segments of the investment-grade market, as well as some key investment considerations.
Archived insights remain available on the site. Please consider the publish date while reading these older insights.
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March 2021
LDI Alert —
Adding intermediate credit to the derisking tool kit: What plan sponsors need to know
Adding intermediate credit to the derisking tool kit: What plan sponsors need to know
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FEATURED RESEARCH AND IMPLEMENTATION IDEAS
As corporate plans approach their fully funded "end state," new goals will need to be set. Members of our LDI team share their research on this transition and the required realignment of asset allocation strategies, including changes in return-seeking and liability-hedging portfolios and key liquidity considerations.
Archived insights remain available on the site. Please consider the publish date while reading these older insights.
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April 2022
Nearing the finish line: Ideas on end-state investing for corporate DB plans
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Faced with extreme market volatility in the early months of 2022, what can corporate DB plan sponsors do to potentially provide stability in their portfolios while still pursuing longer-term funding aspirations? Multi-Asset Strategist Amy Trainor offers thoughts on rerisking, hedge ratios, and liability-hedging and return-seeking allocations.
Archived insights remain available on the site. Please consider the publish date while reading these older insights.
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March 2022
LDI Alert: Preserving funded-ratio stability in volatile markets
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How should corporate defined benefit plan sponsors think about the private allocation decision? Members of our LDI and Alternatives teams propose a “start where you want to end up” approach that incorporates liquidity and return requirements.
Archived insights remain available on the site. Please consider the publish date while reading these older insights.
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February 2022
Start at the end: How to size and structure private allocations for corporate plans
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Our LDI Team offers insights for the coming year, addressing some of the most commonly asked questions on funded ratios, securitized assets, intermediate credit, alternatives, and other return-seeking and liability-hedging topics.
Archived insights remain available on the site. Please consider the publish date while reading these older insights.
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December 2021
LDI in 2022: Nine questions corporate plan sponsors are asking
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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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HOW DO WE WORK WITH YOU?
We partner with plan sponsors at all stages of the LDI process, tapping the full breadth of Wellington’s capabilities.
1. Custom research and consultation
Liability cash-flow analysis
Asset/liability studies
Glidepath construction
2. Investments for a broad range of objectives
Liability matching
Long-duration
- Long credit/corporate
- Long government/corporate
- STRIPS
Absolute return plus long bonds
Cash balance
Return-seeking: Bridge
Listed infrastructure
Low-volatility equity
Opportunistic fixed income
Multisector credit
Return seeking: Core
Active equity
- US
- Global
- Emerging market
Absolute return strategies
3. LDI portfolio construction
Custom LDI benchmarks
Completion management
Cash bond portfolios with derivative overlays
Cash-flow driven investment (CDI)
Dynamic pension management
This is for illustrative purposes only and is not an investment recommendation. This is not an all-inclusive list of approaches that may fit the stated theme. Investing involves risk, and an investment in an approach could lose money.
Meet our LDI team
Amy Trainor, FSA
LDI Team Co-Chair, Multi-Asset Strategist & Portfolio Manager
Amy helps corporate pension sponsors set strategic asset allocation policy. She also manages customised multi-asset portfolios, including glidepath approaches. She partners with the Fixed Income team to implement LDI solutions.
- 25 years of professional experience, including roles at Hewitt Associates (Aon Hewitt) and Towers Perrin (Willis Towers Watson)
- Wellesley College, BA in economics and mathematics
- Fellow of the Society of Actuaries (FSA)
- Chair of Wellington’s Retirement Benefit Plans Oversight Committee and a member of the Corporate Governance Committee
Bill Cole, CFA, CAIA
LDI Team Co-Chair, Fixed Income Investment Director
Bill works closely with LDI portfolio managers, fixed income quantitative strategists and global multi-asset strategy teams to design LDI solutions for corporate plan sponsors. Additionally, he provides portfolio and risk oversight to help ensure the integrity of our investment-grade credit and long-duration approaches.
- 13 years of professional experience
- Drexel University, MBA; College of the Holy Cross, BA in economics and Asian studies
- Chartered Financial Analyst and Chartered Alternative Investment Analyst
Scott St. John, CFA
Portfolio Manager, Long-Duration Fixed Income
Scott manages dedicated US corporate bond portfolios and is a member of our LDI team. He chairs the US Corporate Bond Strategy Group, which helps shape portfolio positioning for corporate bond holdings.
- 25 years of professional experience
- University of Rochester, MBA
- Chartered Financial Analyst
Joe Marvan, CFA
Portfolio Manager, Long-Duration Fixed Income
Joe is a fixed income portfolio manager and serves as chair of the US Broad Market Team. As chair, he is responsible for setting aggregate risk levels and investment strategy in long-duration bond portfolios.
- 30 years of professional experience
- Babson College, MBA
- Chartered Financial Analyst
Allan Levin, CFA, FRM, FSA
Portfolio Manager, Long-Duration Fixed Income
Allan focuses primarily on inflation-linked and interest-rate markets, and is a member of our LDI Team. He develops macro, relative value, and systematic investment strategies that he implements in dedicated US Treasury and STRIPS portfolios in addition to multisector portfolios.
- 23 yrs of prof exp
- Columbia University, MBA
- Chartered Financial Analyst
Connor Fitzgerald, CFA
Portfolio Manager
- 13 years of professional experience
- Bowdoin College, BA in Economics
Schuyler Reece, CFA
Portfolio Manager
- 12 years of professional experience
- University of Pennsylvania, BA in Classical Studies
Sean Lamkin, CFA
Portfolio Manager
- 10 years of professional experience
- College of the Holy Cross, BA in Economics
Campe Goodman, CFA
Portfolio Manager
- 21 years of professional experience
- Harvard University, BA in Mathematics
Rob Burn, CFA
Portfolio Manager
- 19 years of professional experience
- University of Chicago, MBA
Marc Piccuirro, CFA
Portfolio Manager
- 18 years of professional experience
- Boston University, MS in Investment Management
Other team members
Louis Liu, CFA, ASA, MAAA
Fixed Income Quantitative Strategist
- 27 years of professional experience
- Wayne State University, PhD in Statistics
Brendan Fludder, CFA
Research Manager
- 14 years of professional experience
- Providence College, BS in Finance
Mi Li, CFA, FSA
Fixed Income Quantitative Analyst
- 12 years of professional experience
- Peking University, Masters in Finance
Amy Luberto, CFA
Fixed Income Portfolio Specialist
- 14 years of professional experience
- University of Chicago, MBA
Jake Brown, CFA
Investment Director
- 24 years of professional experience
- Boston College, MBA
Jackie Yang
Investment Strategy Analyst
- 2 years of professional experience
- Northeastern University, BS in Business
Ryan Randolph
Corporate Pension Strategist
- 22 years of professional experience
- Boston College, MBA
Brendan MacKenzie, CFA
Consultant Relations Manager
- 15 years of professional experience
- Boston College, MBA
Amy Morse, CFA
Relationship Manager
- 27 years of professional experience
- Babson College, MBA
LET’S TALK LDI
To learn more about our LDI capabilities and offerings please contact us.
Ryan Randolph
Corporate Pension Strategist
explore insights
Investors seeking a sound decumulation strategy must consider a host of variables, including risks that weren't on the radar when they were accumulating assets. Members of our Investment Strategy team consider the interaction between portfolio withdrawals and specific characteristics of the portfolio's realized return. They also offer thoughts on successful decumulation strategies, focusing on portfolio construction, process design, and implementation.
Archived insights remain available on the site. Please consider the publish date while reading these older insights.
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May 2022
Demystifying decumulation: A practical guide
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Sustainability is a strategic priority for our firm and an integral part of our commitment to our clients. By focusing on our clients’ objectives and pairing intellectual curiosity with discipline, we believe we can help our clients meet their long-term goals in a changing world. We appreciate the opportunity to share our approach to advancing sustainable practices across our investment, client, and infrastructure platforms.
Archived insights remain available on the site. Please consider the publish date while reading these older insights.
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May 2022
2021 Sustainability Report
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Multi-Asset Strategist Cara Lafond highlights key themes in private equity markets and explores implications for asset owners.
Archived insights remain available on the site. Please consider the publish date while reading these older insights.
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April 2022
The evolution of private equity and implications for allocators
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A monthly update on equity, fixed income, currency, and commodity markets.
Archived insights remain available on the site. Please consider the publish date while reading these older insights.
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April 2022
Monthly Market Snapshot: March 2022
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We explore why climate change is a compelling organizing principle for investing and highlight the potential benefits and risks of market-neutral implementations.
Archived insights remain available on the site. Please consider the publish date while reading these older insights.
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April 2022
Climate investing: The case for a market-neutral approach
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