In focus

Excellence in LDI: Positioning a multi-manager portfolio for long-term success

The increase in defined benefit plan funded status in the last year has been extraordinary, reaching levels not seen since the Financial Crisis of 2008. Given plans have already allocated significant assets to their LDI portfolios, protecting the gains in funded status must go a level deeper beyond simply adding to LDI allocations. Plan sponsors would do well to devote time and resources to re-examining the overall structure of their LDI portfolio.