Liability-Driven Investing

Your plan is unique. So are its LDI needs.

From liability analysis, to designing a de-risking glide path and using active management to seek added value — Capital Group can help.

Capital Group is an experienced LDI manager, with a track record in managing long-duration strategies of more than 15 years.

Our dedicated LDI portfolio management team is supported by a group of investment analysts, and all the analytics and risk management resources that you would expect from an organization with more than $200 billion of fixed-income assets under management.*

*As of December 31, 2014.

Our flexible approach to liability-driven investing:

  • A range of strategy options — including strategies focused on long-duration government/credit and long duration credit — that can be used for immunization, de-risking or re-risking within your LDI program.
  • Plan sponsors choose the approach and customization that's right for them (including choice of CITs or separate account).
  • Strategies are actively managed for high correlation or excess return; focus is on cash bonds (and supplemental use of swaps).

Customized mix of strategy options

Long duration strategies: Customization may be achieved with client-targeted asset class mix and duration


Further customization may be achived with client-targeted asset class mix and duration

Long duration strategies: Customization may be achieved with client-targeted asset class mix and duration

Additional composite information (PDF) is available for your reference.

The Investment Process

The investment process: 40% sector/industry selection, 25% issuer selection, 15% extended sectors, 10% curve management, 5% swaps vs. Treasuries vs. STRIPS, 5% duration management (around strategic targets)


Delaying LDI? There Are Good Reasons to Reconsider.

By moving ahead with an LDI strategy, plan sponsors may avoid possible future market conditions in which implementation becomes notably more challenging.

Related Events

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.  

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses or the funds’ characteristics statement, which can be obtained from a financial professional or your relationship manager, and should be read carefully before investing.  

The Capital Group companies manage equity assets through three investment groups. These groups make investment and proxy voting decisions independently. Fixed-income investment professionals provide fixed-income research and investment management across the Capital organization; however, for securities with equity characteristics, they act solely on behalf of one of the three equity investment groups.