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

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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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

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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.

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 CO-CHAIRS AND LONG BOND MANAGERS

LDI TEAM CO-CHAIRS
LONG-DURATION BOND MANAGERS
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

LET’S TALK LDI

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

Amy Morse

Director, Pension Strategies

explore insights

2021 Investment Outlook
As we head into the new year, thought leaders from across our investment platform share their views on pressing questions.
December 2020
2021 Investment Outlook
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2021 Fixed Income Outlook
Mercifully for many market participants, 2020 is drawing to a close. Despite persistent risks and challenges in today's extraordinary environment, Fixed Income Portfolio Managers Rob Burn and Campe Goodman see areas of value and opportunity for fixed income investors heading into 2021.
December 2020
2021 Fixed Income Outlook
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2021 Equity Outlook
In our 2021 Equity Outlook we offer our Fundamental Factor Team's latest insights, share multiple views on value investing, explore the latest opportunities in emerging markets post COVID, profile the increasing impact of innovation and technology, and outline Wellington’s growing ESG integration capabilities.
December 2020
2021 Equity Outlook
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The post-COVID economy: A productivity booster shot
Macro Strategist Juhi Dhawan thinks US growth will benefit from a revival in labor productivity in coming years, aided by a digital revolution that's getting a boost from recent technology investments across many areas of the economy.
December 2020
The post-COVID economy: A productivity booster shot
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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
2021 Multi-Asset Outlook
Will 2021 bring another roller-coaster ride for markets? Our 2021 Multi-Asset Outlook, looks at 2020's market rotation and offers investment themes for 2021.
November 2020
2021 Multi-Asset Outlook
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2021 Global Economic Outlook
Our 2021 economic outlook describes the forces we believe will shape macro & market events, including significant geopolitical risks with strong 2021 growth likely.
November 2020
2021 Global Economic Outlook
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An insurer’s guide to fixed income: Setting the record straight on rates and credit
Investment Directors Abigail Babson, Amar Reganti, and Anand Dharan lay out their proposed framework for building a more resilient fixed income allocation that is equal to the challenges of today's environment.
November 2020
An insurer's guide to fixed income: Setting the record straight on rates and credit
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