There Is No Alternative?

We believe that DeepSeek’s groundbreaking method to raise performance could augur well for AI adoption. A cheaper product could encourage more users to harness the technology for profitable use. There could be clear benefits to the entire corporate sector should a productivity-enhancing technology become available at a significantly lower price.

Since LDI was recognized as a best practice for defined benefit plans, sponsors have evolved their investment strategies. Initially, they extended the duration of fixed income using longer duration benchmarks. The next phase focused on customizing Treasury and credit strategies to align with liability risk. Now, we are entering a new phase that asks, “How can we diversify our growing fixed income allocation?”

Investors may want to consider moving up the risk spectrum into investment grade private credit to capture the potential benefits of the asset class with more favorable exposure to leverage and certainty of cashflows.

L&G through its dedicated US investment arm has acquired Arkadia, a premier apartment building located in the West Loop neighborhood of Chicago. This strategic purchase for its Institutional Retirement business marks a significant addition to the portfolio and underscores L&G’s commitment and track-record of investing in high-quality real estate assets on a global scale.

For the seventh consecutive year, LGIM America has been recognized in Pensions & Investments' Best Places to Work in Money Management program! Thank you to our employees for remaining committed to nurturing our collaborative, diverse, inclusive and client-centric culture, which makes this firm one of the best places to work.¹

Andrew Cater, Sabrina Ren and John Southall highlight how navigating interest rate risk in cash balance plans with floors is crucial for companies transitioning from traditional defined-benefit pension plans.