Liability-Driven Investing (LDI) Solutions

Liability-driven investing helps corporate pension plan sponsors ensure the funding of future liabilities while balancing the resulting risk exposures on a total plan basis. We recognize that many aspects of a plan’s investment strategy, such as return-seeking assets and plan goals, impact results for beneficiaries.

Parametric offers comprehensive, systematic, risk-managed solutions at all stages of the LDI process, customized in partnership with pension plan sponsors of all sizes. We go beyond the traditional fixed-income-only approach to LDI with return-seeking investments and completion overlays.

Our approach
We consider both growth needs and risk constraints while addressing two primary problems:

Adequate funding Underfunded liability or desire to
maintain adequate funding

Surplus risk management Mismatch between asset and liability
risk profiles

Meeting sponsors’ needs

Parametric offers many options that help meet the evolving needs of a sponsor’s LDI strategy.

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Parametric Solutions

All our LDI solutions incorporate our proprietary program of key risk analysis, risk management, and daily asset monitoring.

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Why Parametric for LDI?

Flexible, innovative solutions

Customization across physical and overlay
programs
Standard and liability-aware benchmarks and
dynamic hedge ratio management
Deep experience across derivatives and fixed
income

Robust capabilities and resources

Daily monitoring and on-demand reporting of
assets and liabilities
Trading and cash-flow management
State-of-the-art technology
Thought leadership

Exceptional client service

Access to our investment professionals,
actuarial expertise, and LDI specialists
Tailored transitions and implementations
Consultative approach
Custom client reporting

David Phillips, CFA, ASA, EA

Director, Liability Driven Investment Strategies

David leads Parametric’s Liability-Driven Investment (LDI) Strategies. He provides clients expertise on LDI management through his understanding and insight into variations of pension liabilities, investment solutions, and corporate finance objectives. Before joining Parametric in 2019, David was the director of client strategy and research and risk analytics at Russell Investments, where he was responsible for research, development, and analysis of investment strategies for defined benefit plans and evaluating risk for plan sponsors. His career in the financial industry began at actuarial firm Sedgwick James, now part of Mercer, in 1990. His professional experiences include serving as director of asset management for Celanese Corporation, where he led global pension investment activity, and manager of client services at NISA Investment Advisors, where he provided pension liability expertise for the firm’s clients. David holds EA (Enrolled Actuary) and ASA (Associate of the Society of Actuaries) designations, and he’s a member of the CFA Society of Seattle.

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