We believe successful Liability-Driven Investing (LDI) portfolio management requires a comprehensive knowledge of actuarial sciences as well as a deep understanding of financial markets. This belief explains our multi-dimensional approach to LDI that combines a Liability Strategy Development team with a team of experienced portfolio managers.
Pensions unscathed from a claw so deep
Funding ratios rose again in 2022, putting plan sponsors in another surprisingly strong position.
Why US corporate pension plans won’t be importing the UK’s LDI fiasco
The gilt crisis that brought down a UK prime minister also pummeled pension schemes and dialed up the heat on liability-driven investing
Diversification, a Dynamo for LDI
Diversification can relieve long duration corporate bonds from being the only way LDI plan sponsors meet spread or duration targets.
Key Differentiators
Flexibility to Help Meet Plan Sponsors’ Evolving Needs
Ability to pivot from asset management to completion, overlay solutions over the de-risking lifecycle
Expertise in Specialty Fixed Income Sectors
Successful track record of incorporating specialty asset classes like investment grade private credit and securitized assets in an LDI framework
Liability Focused Risk Management is in Our DNA
Voya Investment Management’s insurance heritage forms the foundation for our focus on risk management
LDI Solutions Value Proposition
- Broad fixed income platform drawing on the expertise of more than 200 investment professionals
- Actuarial resources embedded within the LDI Strategy Development team
- Independent but integrated risk management team collaborates with portfolio management team
- Focus on both investment (issuer concentration, spread volatility, bond supply/liquidity) and operational (counterparty, collateral) risks
- More than 45 years experience managing liability-aware portfolios
- Customized solutions optimized for liability defeasance throughout the lifecycle of the plan
- Dynamic & cost effective overlay strategies to reduce funding status volatility, neutralize rate risk, create synthetic return exposures, and/or enhance risk/return profiles
- Liability, key rate duration, and custom benchmark analysis
Voya offers plan sponsors a full suite of pension risk management solutions — from off-the-shelf strategies benchmarked to traditional market-based indices, to bespoke liability-matching portfolios with interest rate overlays.
Off-the-Shelf Solutions*
Bespoke Solutions: Tailored to Meet Specific Plan Needs
Our Liability Strategy team partners with clients to evaluate current plan conditions as well as end-state goals and objectives to develop and recommend strategies appropriate to achieve the desired objectives while balancing risk and return within the established risk profile of each client.
- Complete plan diagnostics and analysis
- Custom benchmark creation
- Blend of market-based benchmarks
- Liability-based solutions
- Completion Portfolio Management
- Duration extension
- Key rate duration matching
- Interest rate hedging
- Tailored reporting packages
- Summary plan overview
- Asset and liability highlights
- Asset and liability returns
- Funded ratio history and attribution
- Interest rate, curve, and quality hedge ratio analysis
- Transition management as mandates evolve and benchmarks change
* Representative allocations; actual portfolios may vary.