Liability Driven Investing

 
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Liability Driven Investing

   
Liability Driven Investments provides plan sponsors the opportunity to understand and manage the risk inherent in their pension plansLiability Driven Investments provides plan sponsors the opportunity to understand and manage the risk inherent in their pension plans.
 
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LDI is an investment framework of managing defined benefit assets relative to the pension plan's liabilities. Within this framework, liabilities become the benchmark and the reference point in assessing the plan's portfolio risk and return characteristics. The investment objectives under LDI may vary but, typically, include aligning asset-liability interest rate sensitivity and/or generating rates of return consistent with, or in excess of, the plan's liabilities.

As pension plan sponsors embrace a Liability Driven Investing (LDI) strategy, they must familiarize themselves with the various approaches available to implement such a strategy. The key decisions plan sponsors must consider are how and when to implement an LDI strategy. Read our in-depth analysis on LDI implementation in our latest research paper.

The Pension Liability Equation/LDI Podcast
Pension Plan sponsors in Europe and North America are looking for alternatives to traditional pension management strategies. A host of issues are prompting plan sponsors to seek out new solutions with the potential to relieve the pressure building on their funds. Listen to this podcast to find out more about trends in the use of liability driven investment strategies. Listen now.

 

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Lee Freitag
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Lee Freitag
Vice President
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Lee Freitag
Lee Freitag
Vice President
 
Lee R. Freitag is a Vice President at The Northern Trust Company, Chicago. Lee is the Product Manager for Liability Driven Investments within Northern Trust Global Investments. Prior to his current assignment, he was an Investment Consultant in the Wealth Management Group's Investment Consulting Services Division. In this position, Lee was responsible for consultative services such as asset allocation and manager search and selection for several Wealth Management relationships as well as the analysis and delivery of investment manager performance information.

Lee’s sixteen years in the financial services industry include fourteen years in various roles at Northern Trust, as well as prior experience at SEI Corp.

Lee received his B.S. degree in Finance from DePaul University in 1990 and his M.B.A. degree in Management Accounting, also from DePaul, in 1999.

 
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