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Liability driven investing (LDI)

Whether your defined benefit plan is active and accruing benefits, or frozen and working toward a termination, you need to understand your investment risks and market opportunities.

Effective LDI can be the key to managing the funded status volatility of your pension plan. That's why an integrated, precise approach to LDI implementation has the potential to:

  • Improve your ability to meet long-term goals
  • Enable more timely decision making
  • Help to better predict the impacts of your plan on overall corporate finance

Developing your LDI strategy

Our platform integrates your assets, liabilities and corporate finance. Add to that our comprehensive advisory services, supported by ongoing asset/liability studies, and you’ll get the full benefit of:

  • A time-tested investment process for researching and identifying institutional investment managers who build portfolios designed to deliver consistent performance in a risk-managed framework
  • Custom LDI and de-risking strategies
  • Advanced scenario testing to help identify the potential impacts of investment decisions
  • Stress testing to support risk management and monitoring
  • Custom goals-based reports, including a graphical snapshot of your plan’s funded status and impact on enterprise financials

Active implementation

Our asset/liability modeling technology achieves a precise match to liabilities to help:

  1. Minimize single security sector risk – with diversified fixed income funds spread across the yield curve
  2. Address gaps between funds and liabilities – with overlaying Treasury strips
  3. Provide a timely view across the portfolio – by implementing active portfolio tilts

And we continually monitor and refine your portfolio, identifying de-risking trigger points and striving to limit the tracking error of your portfolio relative to liabilities.

Our goal is your goal

Ensuring the appropriate level of risk and return in your portfolio.

Implementing LDI within an integrated model can provide significant benefits and efficiencies to your organization, including:

  • Minimal handoffs and opportunities for error
  • Full transparency of fixed income securities, for a more precise liability match
  • Ongoing monitoring, integrated reporting and glidepath management
  • A sophisticated, cost-efficient approach for plans, regardless of size
  • A strong link between organizational goals and implementation
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Improve efficiency and strategic focus with OCIO

We act as an extension of your staff, focused on your long-term goals. We’ll give you dedicated staff, expert advice, timely manager changes, risk monitoring, and goals-focused reporting.

How we're different

Information provided by SEI Investments Management Corporation (SIMC), a registered investment adviser and wholly owned subsidiary of SEI Investments Company.

Insights for institutional investors