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Liability Driven Investing (LDI) Completion Manager

Our Liability-Driven Investing (LDI) solutions seeks to simplify the process for plan sponsors by implementing glide path or de-risking programs.

Strategy Goals

As a Completion Manager, Parametric seeks to simplify the process for plan sponsors implementing glide path or de-risking programs. This is achieved through several components including:

Providing a platform for monitoring the plan assets and liabilities on a daily basis.

  • Coordinating the movement of assets between managers in a seamless manner.
  • Adjusting the interest rate or credit exposure of the fixed income portfolio to achieve the target liability hedge ratio, and to maintain it over time.
  • Having the ability to use overlay instruments to increase overall efficiency and flexibility.

Investment Philosophy

The LDI Completion Manager simplifies the de-risking process by:

  • Daily monitoring of the fund’s allocation to determine if a funded status trigger has been hit
  • Filling in exposure gaps that may exist between current LDI managers utilizing Treasury, STRIPS and Investment Grade Credit fixed income
  • Delivering comprehensive daily and monthly reporting
  • Providing consultation and advice on issues surrounding the implementation of de-risking plan

LDI Investment Process

Liability Driven Investing is offered by Parametric Investment & Overlay Strategies.  For additional information please visit the Disclosure page.

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