LDI Solutions
The Liability Driven Investments 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, 2021
As of December 31, 2021
LDI AUM BY
BENCHMARK
| Long Corporate | $7.6B |
|
| Long Credit | $10.2 B |
|
| Long Gov/Credit | $2.8B |
|
| Spliced Benchmark | $3.9B |
|
| Highly Customized | $2.4B |
|
| STRIPS | $0.8B |
|
LDI AUM BY
INVESTMENT PLATFORM
| Relative Return | $18.3B |
|
| Disciplined Alpha | $4.5B |
|
| Alpha Strategies | $2.9B |
|
| Full Discretion | $2B |
|
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 | |
| | | | | | | | | | | | |
| | | | | | |
| | 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 | |
| | | | | | |
| | Understanding actuarial and liability nuances is critical to success | | | Use capital-efficient duration hedges when possible | |
| | | | | | |
LDI Capabilities
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.
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, including loss of principle.
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.