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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

Surplus risk management

Adequate funding

Underfunded liability or desire to
maintain adequate funding

Surplus risk management

Mismatch between asset and liability
risk profiles

David Phillips

David Phillips, CFA, ASA, EA

Director, Liability-Driven Investment Strategies

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Meeting sponsors’ needs

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

LDI journey image

LDI Journey

Parametric Solutions

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

Monitoring and analysis

Monitoring and Analysis

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

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