The landscape has changed in Pension investing. With recent focus on funding challenges, Cafaro Greenleaf offers a unique approach to Liability Driven Investing (LDI). The solution is forward-looking and greatly reduces risk – as it is driven by known factors such as your plan demographics and benefit payment schedules, rather than uncertain elements such as the economy or a consultant’s view of the market. While most plans are chasing returns, Cafaro Greenleaf focuses more on what the actual liabilities of the plan are, and matches them to proven customized portfolios to ensure that those liabilities are met. The structure also reduces Plan expenses by as much as 50%, while lessening the burden on the committee. Forget what you know about traditional Pension investing, and listen in to learn about new and unique strategies to protect Pension Plans.
A Liability Driven Investment (LDI) strategy is defined as a form of investing in which the main goal is to gain sufficient assets to meet all liabilities, both current and future. These strategies have been a major focus in both public and private pension plans in order to ensure sufficient liquidity in the portfolio to meet liabilities based on actuarial data. Many consultants use hedging tactics or fixed income strategies to protect against interest rate or inflation risk. Cafaro Greenleaf takes this concept a step further when implementing our proprietary LDI strategy.
We do not believe that chasing an expected return is the most prudent portfolio construction strategy because every population of members is different. A traditional 60/40 like pension strategy does not address the obvious concerns like liquidity or market conditions and more importantly does not use actuarial data (what’s known) to drive the asset allocation.
With that in mind, Cafaro Greenleaf will execute a comprehensive asset/liability study on your population and group members in a certain benefit periods based on when they are expected to begin accessing funds. By doing so, not only can we address liquidity concerns but our allocation is more tailored to our benefit payments than is a traditional pension strategy.
We then build individual portfolios for each group and manage each one as a separate portfolio. These individual portfolios are mandated by a customized glide path that shifts assets automatically as you progress over time. They are not influenced by a consultant’s view of the markets or other macro factors that cause negative reactive shifts in the portfolio.
*NOTE - Due to the length, this webcast doesn't qualify for credits.
Who Should Participate
Defined Benefit Plan Sponsors, Trustees, CFO's, Controllers, Finance
What You Will Learn
-Innovative strategies in improving the funding level of your Pension Plan
-Why to focus on the Plan Liabilities rather than investment return only.
-How to save over 50% in the investment costs of your DB plan.
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