Focusing on the journey and the destination
The Pension Solutions and Liability-Driven Investing team addresses client needs through a diagnostic, collaborative approach that aids plans of all sizes and maturity stages. At the core of our capability are foundational equity, fixed-income, and asset allocation resources that skillfully deploy hedging and risk-taking expertise to achieve better outcomes. Our greatest strengths are our experience and flexibility in customizing solutions to deliver true partnership.
Keeping you up to date and informed on the ever-changing U.S. pension plan landscape — in four parts: 1) Chart of the month 2) Pension funding status tracker for corporate DB plans 3) Featured investment capability 4) Pension News Digest - A summary of what is making headlines across the industry
Seizing the moment
LDI experts Andy Hunt and Jonathan Hobbs discuss the client journey to full-funded status.
Seizing The Moment
Andy Hunt, FIA, CFA: : LDI (liability-driven investing) is a solution. It is a partnership between us and a client to help figure out what they need to do, what they want to do, and what is possible. And putting those three together and journeying with that client over time is what LDI is all about. To my mind, it’s not a product. It’s a product plus a service. And that service is an ongoing and evolving one.
Jonathan Hobbs, CFA, FSA: Lately, when I’ve been talking to clients about their funded status, there’s this huge sigh of relief at the increase we’ve seen over the last couple of years. But there’s also some trepidation about what’s next and we want to help them achieve their goals, which are to get over that final hurdle of full funded status. So, we’ve been talking to them about things like increasing the level of precision in their hedging program, about diversification of some of the bonds they’re buying in their portfolios. And then also about how do you take the growth portfolio from where it has been with a higher risk allocation to something more risk-managed for the future.
Andy Hunt: Pensions plans have been on a journey for a number of years. The journey has evolved. So, what was important three, five, seven years ago is different. And what’s important today is getting the implementation right, seizing the moment, taking those steps that you’ve actually been wanting to do for many a year but have been maybe unable because the opportunity hasn’t been there. And then going forward, it is about effective implementation, taking strides to remember that a good LDI solution first and foremost has to be a good asset portfolio, as well as talking to and echoing the needs and the risks of your liability. And I think implementation of good asset portfolios is where the game is at right now.
Pension solutions strategy
Full-service advice, guidance, and analysis. Our seasoned, service-minded team is committed to delivering forward-thinking pension capabilities. We can bring these to your plan and strategy, as suits your situation today and in the future.
Fixed income and LDI
Our Systematic Edge - Multi-Asset Solutions team brings together the return-generating resources of the firm to deliver on client objectives. These encompass efficient return capture by exploiting market inefficiencies and information advantages in different parts of the capital markets. Each component has a part to play in an efficient and diversified return-generating portfolio.
Risk management and implementation
Mapping the journey
Pension liabilities are about the long term, and so is our relationship with you. The insights we gain working closely with you enable us to create solutions targeted to your true needs and investment views. We work with you to build diversified, actively managed, opportunistic portfolio solutions with strong risk management.
Customize your investment design based on your plan’s liabilities and need for growth and re-risking
Engage with our clients over time providing consistent monitoring and detailed reporting
Update and evolve your risk signature over time to adjust your portfolio when appropriate
Define your plan’s risk signature with a comprehensive asset and liability analysis
Your team of experts
Our seasoned specialists are service minded and are truly experts in pension solutions investing. You can rely on us to provide sound investment practices and maintain vigilance through changes. We are agile in our responses and are a dedicated partner at every step of the journey.
Diversification does not ensure or guarantee better performance and cannot eliminate the risk of investment losses.