What are PIMCO LDI Integrated Solutions?Many institutional investors are increasingly focused on better aligning their assets with their liabilities, resulting in a growing interest in liability-driven investing (LDI) solutions. LDI is an important area for PIMCO as we help our clients design investment solutions to navigate a more uncertain and complex economic environment. LDI Integrated Solutions focus on both matching client liability risks and outperforming liability targets by investing outside fixed income. The overall objective of LDI Integrated Solutions is to outperform liabilities by a specific target, depending on each client’s specific objectives and risk tolerance.
An LDI Integrated Solutions approach may make sense for all investors who look to take their liabilities into account when investing their assets. The significant advantage of LDI Integrated Solutions is that they provide a way to target two key objectives – matching liability risks and generating the type of excess returns that many institutional investors require – in a single solution. The return requirement is generally driven by the need to close funding gaps or reduce contributions.
The difference between LDI Integrated Solutions and the related strategies in the LDI suite – LDI Core Plus, LDI Overlay and LDI Overlay Plus – is that the latter strategies all focus on the fixed income opportunity set to outperform their benchmark. LDI Integrated Solutions, however, will typically include other asset classes, such as equity, asset allocation and alternative strategies. The outperformance targets for LDI Integrated Solutions are higher than for LDI Core Plus and LDI Overlay Plus.
The information on this web site is for residents of Europe only.
All material contained on the Exchange-Traded Funds section of this website is purely for informational purposes only and is not intended as investment advice. Investors should seek financial advice before making any investment decisions.
The products and services are available only to residents of those jurisdictions. The information on this web site does not constitute an offer for products or services, or a solicitation of an offer to any persons outside of Europe who are prohibited from receiving such information under the laws applicable to their place of citizenship, domicile or residence. Copyright ©2017 PIMCO Europe Limited. All rights reserved.
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