Portfolio Solutions - Multi-asset
Assisting investors in achieving their desired market exposures while attempting to optimize the cost-risk tradeoff
Volatile markets, liquidity constraints and transaction costs are among the many obstacles that can cause plans to deviate from their intended course. As part of LGIM America’s Portfolio Solutions team, our professionals focused on multi-asset use both physical instruments and derivatives designed to provide custom cost-efficient strategies to help institutional investors navigate rapidly changing investment environments. Our multi-asset strategies are designed for investors who are seeking to optimize their strategic asset allocation, benefit from dynamic approaches for portfolio protection, or implement cost-effective solutions for market exposure replacement. An outline of our solutions includes the following:
Policy allocation management
- Cash equitization and completion (total plan level or individual asset classes)
- Factor exposure and completion
- Volatility management and completion
- Tactical asset allocation
Equity hedging and structuring
- Broad index overlay and replication
- Tactical hedging
- Tail risk protection
- Cross asset exposure (e.g. dual beta)
- Alternative risk premia
- Liquid private equity
- Short volatility (equities and rates)
- Multi-asset absolute return
Each investor has a unique set of objectives, risk preferences and constraints that will be considered to create thoughtful and effective investment solutions. We use our proprietary risk management tools to understand and model the different investment risk factors. This helps us determine the potential trade-offs from various investment alternatives and calibrate various risk parameters like tracking error. Ultimately, we combine these results with the plan sponsor’s investment preferences to arrive at a suitable selection of instruments and solutions. Portfolio managers continuously monitor the performance of all strategies, re-evaluate risk dynamics and search for cost-saving implementation options as markets evolve.
Our diverse team has deep investment experience across products and asset classes which can enhance the customization and cost-effectiveness of our solutions.
- Equity futures
- Interest rate and Treasury futures
- Commodity futures
- Exchange-traded funds (ETFs)
- Equity total return swaps
- Treasury total return swaps
- Interest rate swaps
- Dividend swaps
- Credit default swaps
- Inflation swaps
Options and volatility
- Treasury futures options
- Volatility futures
- Volatility and variance swaps
Benefits of partnering with us
We seek to add value for our clients through our solutions-focused approach that analyzes current portfolios relative to desired outcomes.
Our experienced investment professionals combine global research and local execution with extensive cross-asset allocation expertise.
We provide custom overlays with efficient market exposures for strategic or tactical purposes, as well as scalable and customizable structured solutions
Read our insights
We publish a range of research articles and publications covering key themes in financial markets and topical investment commentary.
The material provided is for informational purposes only as a one-on-one presentation, and is not intended as a solicitation to buy or sell any securities or other financial instruments or to provide any investment advice or service. LGIMA does not guarantee the timeliness, sequence, accuracy or completeness of information included. The information contained in this presentation, including, without limitation, forward looking statements, portfolio construction and parameters, markets and instruments traded, and strategies employed, reflects LGIMA’s views as of the date hereof and may be changed in response to LGIMA’s perception of changing market conditions, or otherwise, without further notice to you.
Accordingly, the information herein should not be relied on in making any investment decision, as an investment always carries with it the risk of loss and the vulnerability to changing economic, market or political conditions, including but not limited to changes in interest rates, issuer, credit and inflation risk, foreign exchange rates, securities prices, market indexes, operational or financial conditions of companies or other factors. 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 or that LGIMA’s investment or risk management process will be successful.
In certain strategies, LGIMA might utilize derivative securities which inherently include a higher risk than other investments strategies. Investors should consider these risks with the understanding that the strategy may not be successful and work in all market conditions. Reference to an index does not imply that an LGIMA portfolio will achieve returns, volatility or other results similar to the index. You cannot invest directly in an index, therefore, the composition of a benchmark index may not reflect the manner in which an LGIMA portfolio is constructed in relation to expected or achieved returns, investment holdings, portfolio guidelines, restrictions, sectors, correlations, concentrations, volatility, or tracking error targets, all of which are subject to change over time.
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.