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Liability Driven Investing

Our Liability Driven Investing approach is designed to stabilize pension funding volatility since pension clients typically need a combination of growth assets and fixed income to meet funding goals.
 
Our team focuses on designing and managing diversified portfolios, beginning with a thorough understanding of the pension plan’s liabilities and objectives. We solve for the return needs of the plan by analyzing minimum contribution requirements, the liability growth rate and the plan’s funded status.  To determine the risk tolerance and allocation to hedging and growth assets, we analyze the size of the plan relative to the sponsor, the sponsor’s own financial circumstances and the target end-game.

 
 


Custom solutions build from a broad range of investment building blocks
 
We create custom solutions to meet a range of pension objectives by applying J.P. Morgan’s active allocation views across asset classes and strategies and utilizing our broad range of investment building blocks. 
 
Clients may task us with monitoring their funded status and adhering to a disciplined process to adjust the asset mix, referred to as “glide path” management.  As the funded ratio improves, the portfolio will shift toward a higher hedge allocation and, therefore, the pension surplus risk will decrease.
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J.P. Morgan
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