Publication Date: July 2023
The next evolution of liability-driven investing
In our view, multi-manager LDI hedging allocations need to evolve to further reduce funded status volatility and help prepare pension plans for end game scenarios like hibernation or annuitization. We argue that a strategy which utilizes advanced portfolio construction techniques as a primary source of alpha can provide both enhanced diversification and downside mitigation to an existing multi-manager hedging allocation.
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