The Roots of Innovation

In the target-date fund space—perhaps the area of institutional investing that has seen the greatest degree of change in the past 10 years—understanding the root of innovation is essential.

Hedge Long First: An Alternative Approach to LDI

Russell Investments discusses the hedge long first approach—reducing overall surplus volatility as much as possible with the assets that are committed to liability hedging.

LDI Q&A with Russell’s Marty Jaugietis

Jaugietis, managing director of Russell’s LDI solutions, on key trends in 2014 and the concept of an LDI quarterback.

Balancing Risk and Return for Custom LDI Strategies

An approach that explicitly balances risk and return may become especially important as a plan’s allocation moves toward increasing the proportion of liability-hedging assets at the expensive of return-seeking assets.

The Next Phase in Plan De-Risking: Custom Liability Benchmarks

The de-risking goals many sponsors have in mind—such as a specific volatility target, lump-sum payouts, or pension annuitization—may require more accurate liability tracking than existing LDI benchmarks can provide.

Constructing a Custom LDI Benchmark

T. Rowe Price has developed a new way to look at LDI benchmarking, one where bond weights are directly tied to plan liability exposures and cash flows rather than to issuance market values.

Using Custom LDI Benchmarks To Measure Manager Performance

Plan sponsors ultimately have one question: Is my LDI portfolio helping me achieve my objectives? Replicating the liability measure most important to the sponsor in an investible benchmark makes that question much easier to answer.

The State of Play—for LGIMA and the LDI Market

LGIMA has rocketed onto the LDI scene in a few short years. Why is this—and what has it observed in the US LDI market in the process?

The Next (LDI) Step: Derivatives

Being liability-focused doesn’t just mean being in long-duration bonds. In this light, LGIMA has focused much of its recent efforts on derivatives—and educating those who have yet to use them.