Strategic Investment Group

fiduciary insights

Investment Policy (Including LDI)

Implementing Liability-Driven Investing: Not a Day at the Beach
The theoretical promise of LDI must be matched by excellence in implementation. Best practices in investment policy, active management, and performance evaluation require markedly different approaches from those in traditional plans.

Birds of Many Feathers: The Increasing Divergence of Investment Policies
Twenty years ago, pension plans, endowments and foundations employed relatively simple, and similar, investment policies built around a conventional asset mix consisting of roughly 60% stocks and 40% fixed income securities. Fiduciaries are under increasing pressure to match their investment policies to new economic realities and evolving investment constraints. Each segment of institutional investors will likely respond differently to the changing marketplace dynamics. As a result, the investment policies of each segment can be expected to diverge significantly from each other.

Frozen Alive
Managing a Frozen Pension Plan Freezing a pension plan forces fiduciaries to change their habits, posing new management challenges in the areas of investment policy, oversight practices, and staffing.

Liability-Driven Investing: A Brave New World of Fiduciary Issues
Liability-driven investing is a radical departure from conventional asset-maximizing strategies. It requires new portfolio structures, customized benchmarks, leverage, derivatives, and above all, changes in investment thinking.

The Purposes and Pitfalls of Investment Policies
An investment policy is an essential tool for providing guidance to all the parties involved in managing investment funds. In a well drafted policy, targets and guidelines are set forth in sufficient detail to be effective but not overly restrictive. Achieving this delicate balance requires a solid understanding of the purposes and pitfalls of investment policies.

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