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The Slow March to LDI
November - 2007
Jeff Rawlins and Dan Strelow, Vice Presidents and Co-Directors, Liability Based Solutions and Tom Shivley, Independent Financial Analyst .
For all the discussion, articles, conferences, and committee meetings over liability-driven investing (LDI) in recent years, it seems that little has changed on average in the way defined benefit pension plans are being managed. As part of the Eaton Vance ViewPoint Series, we discuss in The Slow March to LDI the whys and pose the question, why wait any longer.
The Pension Management Riddle A Case Study in Liability Based Solutions
January 2007
Jeff Rawlins and Dan Strelow, Vice Presidents and Co-Directors, Liability Based Solutions and Tom Shivley, Independent Financial Analyst .
In this paper, we walk through an example of transitioning an active defined benefit plan from a traditional mean-variance asset allocation approach to a liability based approach.
This case study will expand upon the concepts and methodologies introduced in our earlier paper “Pension Management – In A World Out of Balance.” The goal of this paper is to demonstrate both the logic and flexibility of a liability based approach.
Pension Management - In A World Out of Balance
September - 2005
Jeff Rawlins and Dan Strelow, Vice Presidents and Co-Directors, Liability Based Solutions and Tom Shivley, Independent Financial Analyst In this paper, we describe how the asset-centric strategy employed by most pension funds in recent decades is likely to be sub-optimal going forward and propose a re-orientation of risk toward the pension liabilities. We discuss the implications for portfolio strategy and structure, and for asset manager roles, of such a re-orientation of risk. We also note that such a strategic re-orientation is consistent with impending changes in pension insurance and accounting regulations.