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

LDI Alert —<span><br>Adding intermediate credit to the derisking tool kit: What plan sponsors need to know</span>
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.
March 2021
LDI Alert —
Adding intermediate credit to the derisking tool kit: What plan sponsors need to know
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LDI Alert —<span><br>Time to prepare for a “clear skies” environment?</span>
Funded-ratio improvements and the associated derisking opportunity can be short-lived. LDI Team members Bill Cole and Connor Fitzgerald offer ideas to help plans ensure they’re ready.
January 2021
LDI Alert —
Time to prepare for a “clear skies” environment?
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LDI Alert —<span><br>In a volatile time, defense may be on sale</span>
As corporate pensions consider enhancements to their return-seeking portfolios, LDI Team members Amy Trainor and Jake Brown explain why we may be at an attractive entry point for defensive equity and “bridge” strategies.
October 2020
LDI Alert —
In a volatile time, defense may be on sale
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EVERYTHING YOU WANT TO KNOW ABOUT LDI

Members of our LDI Team offer a primer on the nuts and bolts of liability-driven investing as well as more advanced concepts and best practices — all 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

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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

LDI TEAM CO-CHAIRS
LONG-DURATION BOND MANAGERS
PORTFOLIO MANAGEMENT RESOURCES
Amy Trainor
Amy Trainor

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
Bill Cole

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
Scott St. John

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
Joe Marvan

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
Connor Fitzgerald
Connor Fitzgerald, CFA
Portfolio Manager
  • 13 years of professional experience
  • Bowdoin College, BA in Economics
Schuyler Reece
Schuyler Reece
Schuyler Reece, CFA
Portfolio Manager
  • 12 years of professional experience
  • University of Pennsylvania, BA in Classical Studies
Sean Lamkin
Sean Lamkin
Sean Lamkin, CFA
Portfolio Manager
  • 10 years of professional experience
  • College of the Holy Cross, BA in Economics
Campe Goodman
Campe Goodman
Campe Goodman, CFA
Portfolio Manager
  • 21 years of professional experience
  • Harvard University, BA in Mathematics
Robert Burn
Robert Burn
Rob Burn, CFA
Portfolio Manager
  • 19 years of professional experience
  • University of Chicago, MBA
Marc Piccuirro
Marc Piccuirro
Marc Piccuirro, CFA
Portfolio Manager
  • 18 years of professional experience
  • Boston University, MS in Investment Management

Other team members

ACTUARIAL & QUANT RESOURCES
LDI PORTFOLIO CONSTRUCTION
CLIENT & CONSULTANT VIEWS
Louis Liu
Louis Liu
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
Mi Li
Mi Li, CFA, FSA
Fixed Income Quantitative Analyst
  • 12 years of professional experience
  • Peking University, Masters in Finance
Amy Luberto
Amy Luberto
Amy Luberto, CFA
Fixed Income Portfolio Specialist
  • 14 years of professional experience
  • University of Chicago, MBA
Jake Brown
Jake Brown
Jake Brown, CFA
Investment Director
  • 24 years of professional experience
  • Boston College, MBA
Jacqueline Yang
Jacqueline Yang
Jackie Yang
Investment Strategy Analyst
  • 2 years of professional experience
  • Northeastern University, BS in Business
Ryan Randolph
Ryan Randolph
Ryan Randolph
Corporate Pension Strategist
  • 22 years of professional experience
  • Boston College, MBA
Brendan MacKenzie
Brendan MacKenzie
Brendan MacKenzie, CFA
Consultant Relations Manager
  • 15 years of professional experience
  • Boston College, MBA
Amy Morse
Amy Morse
Amy Morse, CFA
Relationship Manager
  • 27 years of professional experience
  • Babson College, MBA
Ryan Randolph

LET’S TALK LDI

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

Ryan Randolph

Corporate Pension Strategist

explore insights

US public debt: Is there a downgrade in the making?
US Macro Strategist Juhi Dhawan looks at the surging US debt through the lens of the credit rating agencies and offers thoughts on what it will take to avert a downgrade.
April 2021
US public debt: Is there a downgrade in the making?
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There’s more to inflation risk than meets the eye
Understanding and evaluating inflation risk in your portfolio is the first step to managing it effectively. Multi-Asset Strategists Nick Samouilhan and Adam Berger lay out a framework for investors to do just that.
April 2021
There’s more to inflation risk than meets the eye
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Nick Samouilhan
 PhD, CFA, FRM
The future of payments
We profile the innovations fueling the next stage of disruption in the payments industry.
April 2021
The future of payments
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The digital transformation of financial services
We highlight the fintech innovations driving the digitization and disruption of financial services.
April 2021
The digital transformation of financial services
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Why Europe offers a robust hunting ground for small caps
Portfolio Manager Anna Lundén offers her local perspective on Europe, highlighting the inefficiencies created over time by the outperformance of small-cap companies vs large-cap companies.
April 2021
Why Europe offers a robust hunting ground for small caps
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EM small caps: Hidden gems in plain sight?
Our team makes the case for strategically investing in EM small caps and for employing an actively managed approach to this underutilized asset class.
March 2021
EM small caps: Hidden gems in plain sight?
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<em>Investment bytes – Asia tech</em><br><span>Faster computation with smaller, more powerful computer chips</span>
We explore the technology fueling the next stage of computer chip innovation.
March 2021
Investment bytes – Asia tech
Faster computation with smaller, more powerful computer chips
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APAC Investment Forum 2021
Wellington specialists offer their views on the key themes transforming the investment opportunity set today.
March 2021
APAC Investment Forum 2021
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