Liability Driven Investing solutions (LDI)

Helping your organization meet its defined obligations through pooled and segregated solutions.

Customized portfolios are created with a thorough understanding of your unique liability structure, appetite for risk and funded status requirements. We work collaboratively with clients and consultants to gain an in-depth understanding of liability profiles and construct portfolios accordingly.

We have also worked extensively with clients to assist in their de-risking journeys through a variety of glide path solutions. We can implement transitions based on funded status, market and other triggers that best capture the timelines required by clients and our sense of opportunity in the marketplace to make de-risking transitions work to the benefit of your portfolio.

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Our liability-driven investing capabilities

Pooled fund solutions for LDI

Three duration pools are available for plans seeking a simple and cost-effective way to implement LDI. Five-, 15- and 30-year targeted duration pools are used as the building blocks to construct total portfolios that provide the duration exposure necessary to match a plan’s liability structure.

Additional tools for liability-aware investors include the CIBC Canadian Core Plus Long Bond Pool and CIBC Canadian Active Long Bond Pool .

To help close or maintain funded status, clients can gain alpha through the addition of active strategies, which can include the CIBC Canadian Bond Corporate Investment Grade Pool and CIBC High Yield Bond Pool.

Our private debt capabilities also allow clients to harvest illiquidity premiums while managing credit risk. Clients benefit from our infrastructure and power expertise, access to transactions and in-depth credit research. Our Private Debt Long Bond Pool aims to hold a majority of internally rated issues, which allows clients to capture excess yield while benefitting from stable, contractual cash-flows generated by long-life infrastructure assets with strong counterparties, like federal, provincial and municipal governments.

Working closely with you to understand your organization’s needs, we'll build a tailored portfolio that matches your liability duration, while addressing yield and liquidity needs.

Segregated solutions for LDI

Segregated LDI solutions are available to clients seeking interest rate risk management strategies. Our process to build a fully tailored solution begins with analysis of:

  • Current and projected liability obligations and the factors impacting valuations
  • Existing plan assets, funded status and desired plan funding ratio
  • Asset performance and tracking tolerances under various stress tests and economic scenarios
  • Tolerance for active tilts in credit sector spreads, duration variance and yield curve reshaping

To learn more about our LDI solutions, contact us at Opens your email app..