The LDI Solutions team partners with clients, consultants and Loomis Sayles’ investment teams to help deliver our best pension solutions
- Offer customized solutions via standard third-party benchmarks, spliced benchmarks, liability benchmarks, cash flow solutions and overlays
- Partnership approach combining our actuarial, quantitative and credit expertise
- Leading edge analytics via our proprietary LDI Toolkit
Overview
As Of December 31, 2022
As of December 31, 2022
LDI AUM BY
BENCHMARK
Funds and their amounts
| color in donut |
fund |
amount |
| Long Corporate | $5.5B |
|
| Long Credit | $7.5B |
|
| Long Gov/Credit | $2.7B |
|
| Spliced Benchmark | $2.2B |
|
| Highly Customized | $2.0B |
|
| STRIPS | $0.6B |
|
LDI AUM BY
INVESTMENT PLATFORM
Funds and their amounts
| color in donut |
fund |
amount |
| Relative Return | $12.5B |
|
| Disciplined Alpha | $3.8B |
|
| Alpha Strategies | $1.7B |
|
| Full Discretion | $1.7B |
|
| Pension Solutions | $0.7B |
|
LDI Philosophy
Active credit should serve as the foundation of our LDI portfolios
Be wary of overly complex solutions that may lead to a false sense of precision
Seeking to understand actuarial and liability nuances is critical to our success
Use capital-efficient duration hedges when possible
LDI Capabilities
- Analytics
- Total plan modeling
- Funded status scenarios
- Design
- Benchmarks
- Liability-hedging assets
- Glide paths
- Cash balance plan hedging
- Market Intellegence
- LDI trends
- Pension regulation insights
- Pension risk transfer
Implementation
- Benchmarks
- Standard third-party
- Spliced
- Manage directly to liabilities
- Solutions
- Diversified LDI
- Cash flow generation
- Overlay management
- Completion management
- Funded status monitoring
- End-game options
- Reporting
- Customized
Our Partnership Approach
At Loomis Sayles we recognize that pension plan sponsors face a multitude of challenges beyond simply investing assets. Our partnership approach is designed to evolve as the plan evolves by providing total plan strategy, insights and analytics to help meet your objectives at every stage in a plan’s lifecycle. The integration of our LDI Solutions team with the portfolio management team’s alpha generating capabilities designed to deliver desirable outcomes for plan sponsors at every step of the way.
The Team
Loomis Sayles has an experienced team dedicated to custom pension solutions. We partner with clients and consultants to design and implement our best liability hedging structures while also providing LDI market intelligence, thought leadership and customized reporting.
Justin Teman, ASA, CFA
Head of LDI Solutions
17 years of experience as of 2021
Srinivas Andra, PhDl
Quantitative Analyst
13 years of experience as of 2021
Xinjia Liu
Quantitative Analyst
10 years of experience as of 2021
The ability of an actual portfolio to deliver the required cash flows is not guaranteed and is subject to a variety of factors including, but not limited to, the availability of bonds, active management and trading, transaction costs, default risk, reinvestment risk, rebalancing risk and liquidity risk.
Commodity, interest and derivative trading involves substantial risk of loss.
Any investment that has the possibility for profits also has the possibility of losses.
This is for informational purposes only and should not be construed as investment advice. Investment decisions should consider the individual circumstances of the particular investor. Any opinions or forecasts contained herein reflect subjective judgments and assumptions of the author and do not necessarily reflect the views of Loomis, Sayles & Company, L. P. Investment recommendations may be inconsistent with these opinions. There can be no assurance that developments will transpire as forecasted. Examples and analysis are provided for illustrative purposes only and do not represent actual accounts. Accuracy of data is not guaranteed but represents our best judgment and can be derived from a variety of sources. Opinions are subject to change at any time without notice.