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LDI Investment Solutions Process and Philosophy

Our investment approach has been created to help each client arrive at a solution that best fits their individual plan goals and risk tolerances. We have designed a flexible investment framework that embraces the ongoing needs of each plan from the discovery to the implementation phase.
  • Our LDI Solutions Team partners with clients and their advisors to help them manage risk and try to reach their pension goals
  • This approach allows the team to develop customized portfolios to each client's goals and risks
  • The team utilizes a Pension Risk Management framework to manage the relative volatility of assets and liabilities
LDI Solutions philosophy and process
LDI Solutions philosophy and process
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Through an information gathering process involving historical and current plan characteristics we better understand client goals and risk budget. This assessment of plan liabilities assists in quantifying client risks and objectives and the creation of a customized investment policy statement.

LDI Solutions philosophy and process


A customized client solution begins with stochastic asset liability modelling to identify potential asset allocation strategies that seek to optimize risk-adjusted returns by:

  • Lowering funded status volatility
  • Minimizing contributions needs
  • Optimizing plan expense

Customize Liability Benchmark hedges client-specific interest rate risk and a customized glide path incorporates current and long-term pension risk objectives. A glide path provides a systematic approach to de-risking that is dynamically triggered by changes in funded status. Efficient cash-overlay strategies may also be developed.


Driven by the plan sponsor's adoption of a new investment policy statement, portfolio construction utilizes proprietary research and outside analytics to apply quantitative and fundamental approaches to relative value. Fundamentals, valuation and market technical are key factors in determining sector weights and duration/curve exposure.

Ongoing review

We partner with our clients to pursue client objectives through ongoing monitoring of funded levels versus goals and glide path. Funded status and investment performance reconciliation are customized to client needs. An annual review process re-optimizes a portfolio through ongoing discovery, design and implementation.

Read more details about our customized framework and LDI capabilities

Contact Us

For more information on our LDI capabilities, please contact the LDI team