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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Investment advisory services offered through Parametric Portfolio Associates^® LLC ("Parametric"), an investment advisor registered with the US Securities and Exchange Commission.

Parametric (National Registration Database No. 42850) is also registered as a Portfolio Manager with the securities regulatory authorities in certain provinces of Canada with regard to specific products and strategies. Parametric provides advisory services directly to institutional investors and indirectly to individual investors through financial intermediaries. The information on this website does not constitute an offer to sell, or a solicitation of an offer to purchase, securities in any jurisdiction to any person to whom it is not lawful to make such an offer. Investing entails risks and there can be no assurance that Parametric (and its affiliates) will achieve profits or avoid incurring losses. All investments are subject to potential loss of principal. Parametric does not provide tax or legal advice. Prospective investors should consult with a tax or legal advisor before making any investment decision. Please refer to the Disclosure page for important information about investments and risks.

S&P Dow Jones Indices are a product of S&P Dow Jones Indices LLC (“S&P DJI”) and have been licensed for use. S&P^® indexes are registered trademarks of S&P DJI; Dow Jones^® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); S&P DJI, Dow Jones, and their respective affiliates do not sponsor, endorse, sell, or promote Parametric and its strategies, will not have any liability with respect thereto, and do not have any liability for any errors, omissions, or interruptions of the S&P Dow Jones Indices.

Liability Driven Investing (LDI) Completion Manager

Strategy Goals

Investment Philosophy

Connect with our team on this strategy

How Low Interest Rates Are Changing Liability-Driven Investing

Using Swaptions in a Pension Glide-Path Setting

The Role of the LDI Completion Manager