Specialized expertise and extensive resources allow us to partner with clients at all stages of the de-risking lifecycle
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.
LDI Annual Review: 2023
A third consecutive year of improved funded status for U.S. pension plans, IBM re-opens its DB plan, and the importance of diversifying and de-risking.
Private Credit Insights: The Year of the Pension Fund
Next year’s alts themes are pension funds’ move into private credit, the IRA-driven appeal of renewables infrastructure debt, and big opportunities in mortgage derivatives.
A Guide to Investment Grade Private Credit
With attractive yields, robust covenant protection, and a surprising amount of liquidity, investment grade private credit is a growing favorite of both investors and borrow
LDI Quarterly Update: 3Q23
Funded status improved once again for S&P 500 pension plans, rising for the fourth consecutive quarter to 108.7%—the highest level since 2007.
Three Reasons to De-Risk Now That Your Plan Is Waaayyy Better Funded
Although most pension plans are now over 100% funded, many still carry elevated allocations to equities. De-risking isn't just beneficial, it’s mission critical
LDI Quarterly Update: 2Q23
Funded status for U.S. pension plans improved in 2Q by over five percentage points...
De-risking: If Not Now, When?
Strong funded ratios and higher interest rates are prompting many corporate pension plan sponsors to shift assets to LDI strategies.
LDI Quarterly Update: 1Q23
1Q23 was marred by significant volatility in the banking sector...
Key Differentiators
Flexibility to Help Meet
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Expertise in Specialty
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Liability Focused Risk
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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.
Managing Pension Risk & Liabilities
Best Practices in LDI
Contact Us
For more information, please contact voyaimldi@voya.com.