Liability Driven
Investments
Our bespoke liability driven investment solutions
manage investors’ assets relative to their liabilities.
      institutional our capabilities liability driven investments

      Liability Driven Investments

      We manage an investor’s assets relative to their liabilities (or investment goals) so that their assets either perform in line with, or outperform the liabilities. Our bespoke solutions are specifically tailored to each investor’s cash flow requirements and risk appetite. The success of our approach is evidenced in a history of stable and consistent outperformance over long time periods and within tight tracking errors.

      Our Investment Approach We manage an investor’s assets to match (or beat) liability cash flows. We follow a rigorous investment process where risks present in liabilities are managed in a manner where they are either: Hedged out (those “unrewarded” risks, such as interest rate risk, that do not offer sustainable risk premia over the long term), or
      Managed through fundamental research and analysis (“rewarded” risks that offer sustainable risk premia over the long term).
      Liability Driven Investments

      Integrating ESG Factors

      Environmental, social and governance issues can and do impact returns. Responsible investing (RI) aims to maximise long-term risk-adjusted returns by incorporating ESG risk factors into investment decision making and active ownership. When incorporating RI principles in our fixed-income investment strategy, we consider three focus areas:

      ESG INTEGRATION. This is the systematic and explicit inclusion of ESG factors into our traditional financial analysis. Our credit analysts undertake ESG risk assessments on each investee company to identify material risks and establish the financial implications of those risks materialising.

      SCREENING. Negative screening is embedded in our investment process with opportunities for positive and client-instructed screening. Our four-pillared framework is designed to deal with the nuances of fixed income investing and screens an investment from a RI perspective before conducting a deep dive into the issuer fundamentals. It considers: (i) the debt type, is it a bond or a loan? (ii) the listing status of the issuer as both private and public companies can issue debt; (iii) the industry or sector that the issuer belongs to; and (iv) using our RI team’s proprietary model, determines a quantitative ESG profile score.

      STEWARDSHIP: BE AN ACTIVE OWNER. Although fixed income investors are not owners in the companies they invest in, they still have an important role to play in encouraging issuers to improve their ESG risk management and to develop more sustainable business practices. We do this by actively engaging with companies on ESG risk factors, thereby enhancing risk-adjusted returns for our clients. Learn more