Liability-driven investing (LDI) has become an important tool for plan sponsors. David Chittim and Albert Trezza of BNY Mellon Asset Management examine approaches for implementing LDI that best achieve the sponsor’s objectives.

For example, much has been written about the desirability of matching the durations of plan assets and liabilities. However, it is important not only to match durations, but to construct portfolios that are appropriate for the plan’s status: a plan that is viewed as an ongoing entity requires a different approach than one that is frozen or terminated. David and Al outline the steps plan sponsors need to take to ensure that LDI is working optimally towards achieving the company’s goals.

For more information or a hard copy please contact, please contact Peter Austin at BNY Mellon Asset Management at 412 234-4474.

The preceding information is based upon the analysis of historical performance of various asset classes and assumptions with respect to future economic conditions. Past performance is not an indication of future results. This information is not intended to provide specific advice, recommendations or projected returns of any particular MAM product.