Liability driven investing (LDI)

Three pillars support our holistic partnership approach:

  • Designing a portfolio to meet specific client outcomes
  • Satisfying plans’ need for guidance
  • Addressing plans’ request for flexibility

Process

BlackRock's team performs extensive analyses using our proprietary Aladdin® system, technology that allows for efficiency in providing a precise picture of the plan’s liability exposures. The team designs a gradual de-risking glide path, making sure that the asset mix is in sync with client risk and return goals. BlackRock offers three complementary approaches to fixed income credit portfolio management: Index, Systematic, and Fundamental. 

BlackRock's LDI solution involves understanding each client's unique needs, goals, liabilities, active risk preferences and constraints to design a comprehensive solution that may consist of allocations to different funds/strategies. Strategies include Active Credit, Credit Screened (Index enhanced), STRIPS, Active Government/Credit, SURF and TURF (series of levered funds with ultra-long duration, used as building blocks), Passive, and Derivative Overlay.

Services

In many cases we not only manage the client's investments but also provide:

  • Liability Benchmarking
  • Completion Management
  • Glide Path Implementation

Applications and Potential Benefits

BlackRock's LDI services may appeal to investors who have the following objectives:

  • Develop a more comprehensive and precise approach to pension plan de-risking
  • De-risk without sacrificing too much potential upside return
  • Enhance hedging precision, governance, and accountability

Three pillars support our holistic partnership approach:

  • Designing a portfolio to meet specific client outcomes
  • Satisfying plans’ need for guidance
  • Addressing plans’ request for flexibility

Process

BlackRock's team performs extensive analyses using our proprietary Aladdin® system, technology that allows for efficiency in providing a precise picture of the plan’s liability exposures. The team designs a gradual de-risking glide path, making sure that the asset mix is in sync with client risk and return goals. BlackRock offers three complementary approaches to fixed income credit portfolio management: Index, Systematic, and Fundamental. 

BlackRock's LDI solution involves understanding each client's unique needs, goals, liabilities, active risk preferences and constraints to design a comprehensive solution that may consist of allocations to different funds/strategies. Strategies include Active Credit, Credit Screened (Index enhanced), STRIPS, Active Government/Credit, SURF and TURF (series of levered funds with ultra-long duration, used as building blocks), Passive, and Derivative Overlay.

Services

In many cases we not only manage the client's investments but also provide:

  • Liability Benchmarking
  • Completion Management
  • Glide Path Implementation

Applications and Potential Benefits

BlackRock's LDI services may appeal to investors who have the following objectives:

  • Develop a more comprehensive and precise approach to pension plan de-risking
  • De-risk without sacrificing too much potential upside return
  • Enhance hedging precision, governance, and accountability