Client Solutions

An array of timely and solutions-focused articles and whitepapers from our investment leaders and solutions team

The Case for Investment Grade Private Credit within an LDI Portfolio

Interest in investment grade private credit strategies has been growing in recent years. 2024 could be the year where attractive market conditions intersect at the right moment within the evolution of DB plan sponsor’s LDI programs.

Optimizing LDI Strategies

LGIM America has developed a natural extension to portfolio optimization that is based on fundamental tenets of portfolio management, but that also reflects the practicalities that pensions face.

Bank Retrenchment

Our research indicates that banks have remained the principal providers of debt financing, although over the last ten years alternative lenders have made meaningful advances, particularly in infrastructure.

An Introduction to US Credit Private Placements

Relative to public investment grade corporate bonds, LGIM America feels the attractive premium of investment grade private placements, paired with a potential decrease in tail risk and the diversification, could have positive benefits for institutional investors.

Setting the Interest Rate Hedge for Pensions

In this whitepaper, we present the strategic perspective of our philosophy when setting the hedge level of a DB pension plan.

Retirement Solutions, not Products

True retirement solutions involve not only solid investment products, but they must represent a holistic solution for participants. The solutions need to directly address the four fundamental risks participants face during drawdown in a clear and easy to understand way.

Cash Balance Plans

Because cash balance plans with yield-based crediting rates operate differently than traditional plans, it is vitally important for investment strategy, contribution strategy and actuarial assumption setting to operate in a coordinated fashion to meet plan sponsor goals.

Tailor Your Risk by Buttoning-up with an Equity Collar

We believe it is particularly crucial for pension plans to limit the range of potential funded status outcomes. Using a collar strategy defines the range of equity outcomes, giving sponsors greater control over the actions required to finish fulfilling pension obligations.

Liability Disinterested Investing

In this paper, we outline our rationale and various implementations that we believe can help institutional investors meet the demands of their sponsoring organizations while potentially minimizing any trade-offs against long-term expectations for market risks and rewards.

Dividing Retirement Into Distinct Segments Can Ease the Planning Process

We believe dividing retirement into manageable phases allows the implementation of retirement income solutions that more effectively meet the evolving needs of today’s retirees.

Views and opinions expressed herein are as of the date published and may change based on market and other conditions. The material contained here is confidential and intended for the person to whom it has been delivered and may not be reproduced or distributed. The material is for informational purposes only and is not intended as a solicitation to buy or sell any securities or other financial instrument or to provide any investment advice or service. Legal & General Investment Management America, Inc. does not guarantee the timeliness, sequence, accuracy or completeness of information included. Past performance should not be taken as an indication or guarantee of future performance and no representation, express or implied, is made regarding future performance.

Unless otherwise stated, references herein to "LGIM", "we" and "us" are meant to capture the global conglomerate that includes Legal & General Investment Management Ltd. (a U.K. FCA authorized adviser), LGIM International Limited (a U.S. SEC registered investment adviser and U.K. FCA authorized adviser), Legal & General Investment Management America, Inc. (a U.S. SEC registered investment adviser) and Legal & General Investment Management Asia Limited (a Hong Kong SFC registered adviser). The LGIM Stewardship Team acts on behalf of all such locally authorized entities. © 2024 Legal & General Investment Management Limited. All rights reserved. No part of this publication may be re-produced or transmitted in any form or by any means, including photocopying and recording, without the written permission of the publishers.

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