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Liability-driven investing
Helping you better manage the impact of your pension plan on your organization
Liability-driven investment (LDI) strategies include your plan's liabilities as an integral part of determining the right asset mix—a mix designed to more effectively manage key risk factors.
Russell LDI solutions...tailored to your needs
Our long-term relationships with leading pension plans and ongoing research help us to analyze your situation and help you decide how to implement an LDI strategy.
Putting your LDI strategy into action
Russell has a full complement of options to help you manage the impact of your pension plan on your organization.
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- Russell Interest Rate Management (IRM) solution
In the current market environment, spreads in long corporate bonds present an attractive opportunity to address interest rate risk mismatch.
In the face of tremendous market volatility, Russell's Interest Rate Management solution provides a long-term strategic allocation with a goal of limiting surplus volatility.
Using a mix of underlying fixed income funds, we can build a portfolio tailored to your specific interest rate management objectives. We can then help you allocate your remaining assets to meet return-seeking investment objectives.
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Russell's expertise delivered in a custom IRM solution for you
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- Russell Long Duration Fixed Income Fund
If you're simply looking to extend the duration of your existing bond portfolio, we offer a fund with a duration of over 10 years to help minimize interest rate risk.
- Russell separate accounts
If you choose to implement an LDI strategy synthetically, we can help you save transaction costs and streamline operations through a separate account.
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Investment programs tied to your objectives
Liability-driven investments are one solution that helps us create investment programs tied to your objectives. We also offer:
Contact James or Gerry to learn more about liability-driven investing and our other solutions for your organization:
The Russell funds listed are not mutual funds but are funds of the Russell Trust Company Commingled Employee Benefit Funds Trust Russell Interest Rate Management Solution.
Please remember that all investments carry some level of risk, including the potential loss of principal invested. They do not typically grow at an even rate of return and may experience negative growth. As with any type of portfolio structuring, attempting to reduce risk and increase return could, at certain times, unintentionally reduce returns.
Diversification and strategic asset allocation do not assure profit or protect against loss in declining markets.
Interest Rate Management strategies contain certain risks that prospective investors should evaluate and understand prior to making a decision to invest. These risks may include, but are not limited to; interest rate risk, counter party risk, liquidity risk and leverage risk. Interest rate risk is the possibility of a reduction in the value of a security, especially a bond or swap, resulting from a rise in interest rates. Counter party risk is the risk that either the principal or an unrecognized gain is not paid by the counter party of a security or swap. Liquidity risk is the risk that a security or swap cannot be purchased or sold at the time and amount desired. Leverage is deliberately used by the fund to create a highly interest rate sensitive portfolio. Leverage risk means that the portfolio will lose more in the event of rising interest rates than it would otherwise with a portfolio of physical bonds with similar characteristics.
Bond investors should carefully consider risks such as interest rate, credit, repurchase and reverse repurchase transaction risks. Greater risk, such as increased volatility, limited liquidity, prepayment, non-payment and increased default risk, is inherent in portfolios that invest in high yield ("junk") bonds or mortgage backed securities, especially mortgage backed securities with exposure to sub-prime mortgages.
USI-3464
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