Insight

U.S. Pension Plan Update

LDI portfolios are heavily invested in long U.S. Investment Grade credit, so implementation efficiency is paramount. Allspring’s Small Issuer Long Credit strategy is novel, diversifying, and performing as intended.

Authors

6/1/2023

12 min read

Topic

Multi-Asset

Key takeaways

  • Effective manager diversification relies on finding meaningfully different manager styles. We have designed and built a diversifying long credit strategy called Small Issuer Long Credit (SILC).
  • Funded ratio has improved and most of the improvement is due to strong equity returns
  • Why SILC? It is known that the long credit market is quite concentrated, with 50% of the market in only 10% of issuers.
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