Liability-Driven Investing | Capital Group


Liability-Driven Investing

Choose the Right Path for Your Plan’s LDI.

With a full range of LDI capabilities and over 15 years of experience in long duration, we can help DB plans move forward with confidence.

Your Plan Is Unique. So Are Its LDI Needs.

Capital Group has offered long-duration strategies since the advent of pension plan de-risking in the late 1990s. Today, our strategies — with their consistent track records — are just one aspect of how we can help your defined benefit plan.

Whether you have a simple need to diversify an existing manager lineup, or you want to use leading-edge quantitative techniques to seek an optimal LDI solution, Capital Group can help. What else would you expect from a global investment manager with more than $250 billion of fixed-income assets under management?*

*As of June 30, 2016. Assets managed by Capital Fixed Income Investors. All values in USD.

Different Levels of Strategy Customization Across the LDI Glide Path.

  • A range of options — including strategies focused on long duration government/credit and long duration credit — 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).
  • Long duration strategies are actively managed to seek high correlation or excess return, with emphasis on seeking attractive risk-adjusted returns while limiting downside risk.


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

Active Long Duration Investing, Built on Deep Credit Research

For deeper insights, our extensive team of credit analysts collaborate with other teams (equity and macroeconomic/quantitative) across the globe.

We have a consistent and risk-aware investment approach that emphasizes limiting downside risk. Our goal is to generate consistently superior investment results with low correlation to other LDI asset managers.


Customized LDI, Because One Size Does Not Fit All

Our experienced LDI team includes 20 investment professionals with roles tied to the development of LDI programs, derivatives and investments.



LDI and the Rising Rates Riddle

The Fed’s move away from its near-zero policy has begun. Discount rates may rise. From an LDI perspective, what should plan sponsors do?

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 collective investment trust's Characteristics statement, which can be obtained from a financial professional, Capital 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.