Pensions

Liability-Driven Investing

One-third of US corporate defined benefit plan sponsors have implemented a liability-matching strategy. We expect many companies will continue to follow an incremental approach to
LDI by:

• Lengthening duration of fixed income
• Adding credit exposure
• Marginally increasing fixed income allocations

Companies are grappling with the timing of a shift into fixed income — weighing the tradeoffs between locking in liabilities when interest rates are at all time lows and funded ratios have improved on the back of bond and stock market rallies.

Since no two clients are alike, we work with each of our clients individually to detrmine an LDI strategy that fits their particular needs.