LDI - Revisiting the Client-led Solution Framework
Liability driven investing (LDI), managing pension investments in a manner that defines and identifies solutions to reduce risks relative to pension liabilities, has become recognized as a best practice for defined benefit pension plan sponsors. The trend toward LDI has accelerated as companies recognize that taking on non-core financial risk to leverage shareholder returns using the pension plan is less effective than leveraging returns in the core business. LDI can add value for all plan sponsors. For some plan sponsors, LDI is nice to have, for others LDI is critically important.
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Additional insights
Collectively Forecasted, Never Arrived
Investment Outlook | Q1 2024
Like driving on ice, the trick to surviving 2024 may be not over committing in one direction. Staying flexible at the beginning of the year should allow for more insightful decisions down the road.
Rethinking Overlay Manager Diversification
LDI
At LGIM America, we believe overlay manager diversification is likely inefficient and creates uncompensated risks. Using multiple overlay managers can result in increased costs, collateral inefficiency and higher governance burdens.
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