Parametric’s Liability-Driven Investing (LDI) strategies are designed to help pension plans manage assets in concert with their liabilities. LDI is an exercise in investing assets to fund future liabilities while balancing the resulting risk exposures on a total plan basis.
Parametric LDI focuses on the total portfolio, enabling plan sponsors to better observe the total risk profile of assets versus liabilities and to create a more efficient liability hedge.
Parametric LDI is a suite of comprehensive, systematic, risk-managed solutions for all stages of the LDI process. Recognizing that each investor’s LDI journey is unique, Parametric offers a broad range of solutions that can be customized to support the goal of funding future liabilities while balancing risk exposures on a total plan basis.
Investing involves risk. There is no guarantee that the strategy will be successful. All investments are subject to loss.
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Why choose Parametric?
$389B
Total firm
AUM
30+
Years of firm
experience
26
Years of LDI
experience
As of 12/31/2022
How it works
Parametric LDI is tailored to meet the individual plan’s needs. Through our pension and analysis program, we analyze plan liabilities and assets to understand key pension risks. We thoughtfully assess liability cash flows, yield curve suitability, and liability characteristics to design an effective hedging program that can incorporate cash, bonds, a completion overlay, and glide path management.
Parametric offers many options that help meet the evolving needs of a sponsor’s LDI strategy.



Intended benefits of Liability-Driven Investing

Innovative solutions
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A focus on risk
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Experience and scale
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Parametric has more than 30 years’ experience managing systematic, rules-based strategies. Our size, scale, and proprietary technology enable us to deliver customized, cost-effective LDI solutions for clients of all sizes, at all stages of the LDI journey.
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Get in touch
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More to explore
2023 LDI Outlook: It’s All About Balance

by David Phillips, Director, Liability-Driven Investment Strategies
January 18, 2023
Strike the right balance between risk and reward in pension plan funding.
A Philosophy for Managing Corporate Pension Assets: LDI is Everything

by David Phillips, Director, Liability-Driven Investment Strategies
September 2, 2022
Liability-driven investing helps institutional investors build the best asset pool to fund future payouts. Find out how our whole-plan approach delivers transparency and efficiency.
Midyear LDI Outlook: Uncertainty and Pension Investing

by David Phillips, Director, Liability-Driven Investment Strategies
August 4, 2022
We began the year in an uncertain market environment, and it’s just as uncertain now. For LDI investors, we continue to see reasons for optimism.