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Liability driven investments

How do liability driven investments work?

DB Solutions works with plan sponsors, their consultants and Sun Life Capital Management (Canada) Inc., to develop custom fixed income and/or derivative portfolios to match the pension plan's expected liabilities. Solutions can be simple or sophisticated depending on the plan sponsor's needs and investment policies.

What are advantages for liability driven investments for plan sponsors?

  • Reduced volatility of cash contributions
  • Reduced volatility of earnings per share and balance sheet items
  • Can facilitate future annuity purchase
  • Assets are maintained and can be used to fund longevity insurance premiums
  • Assets can be optimized to provide additional yield and diversification

Where to start?

Contact us for a non-binding customized illustrative quote at no cost. For more information about what details we need, access our liability driven investment quote data requirements.

Who provides LDI solutions?

Defined Benefits Solutions works in close collaboration with Sun Life Capital Management (Canada) Inc. to provide liability driven investing solutions. Sun Life Capital Management (Canada) Inc. manages the underlying investments that constitute the LDI mandates, while also partnering with DB Solutions to develop customized strategies, grow new business and provide ongoing client servicing.

Sun Life Capital Management (Canada) Inc. is a Canadian registered portfolio manager that was established in Canada in August 2013 to offer customized investment solutions, specializing in open-ended private asset class pooled funds, to institutional investors. Visit SLCManagement.com for more information about the company.

LDI Facts

£908 billion of U.K. pension assets managed with reference to their liabilities.2

 

1 Liability driven investment solutions are provided by Sun Life Capital Management (Canada) Inc., a Canadian registered portfolio manager, investment fund manager, exempt market dealer, and in Ontario, commodity trading manager. Access SLCManagement.com for more information about the company.

2 2017 KPMG LDI Survey

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