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Derisking and liability-driven investing strategies
Overview
Reducing pension risk and dampening funded status volatility’s effects on the financial statement can be among your organization's most important objectives. Liability-driven investing (LDI) and other derisking strategies are designed to mitigate risk, decrease volatility, and maintain funding gains.
Vanguard's defined benefit (DB) professionals can help you address your goals with a full spectrum of sophisticated investment products and advanced tools.
Experience and expertise
Vanguard investment professionals bring deep experience and skills to help you develop and implement DB strategies to achieve your unique goals. Our actuarial, legal, and compliance experts provide further support for your DB initiatives and circumstances.
Aligned with you
With Vanguard, there is no third party. Our unique investor-owned1 structure means our interests are always aligned with yours.
Sophisticated products and tools
Well-designed, low-cost products from index portfolios to extended duration strategies can easily be tailored for your LDI situation. Address your risk and return goals with the help of our advanced modeling tools—from asset-liability studies and glide-path tests to implementing immunization and termination strategies.
It’s all about risk. Market risk, volatility of the funded status, impact to the balance sheet, and so forth. We have the portfolios and the expertise to help plan sponsors rein in risk.
Brett Dutton
Head of Pension Strategy, Vanguard Institutional Advisory Services
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1 Investor-owned means fund shareholders own the funds, which own Vanguard.
All investing is subject to risk, including the possible loss of the money you invest. Diversification does not ensure a profit or protect against a loss.
LDI, or liability-driven investing, is a form of investing in which investment risk is measured by the performance of assets relative to a liability, such as that of a defined benefit plan.