Standard Life Investments launches target liability funds
Standard Life Investments has launched a series of Target Liability Bond Pooled Funds, making liability driven investment (LDI) solutions more widely available for small to mid-sized pension funds.
The solution will be available initially through Standard Life Investments and The Standard Life Assurance Company of Canada.
Claude Turcot, senior vice-president, quantitative management at Standard Life Investments Inc, says: "Canadian pension plans continue to face significant short and long-term pressures, including plan deficits, interest rate risks and longevity. But while the challenges are the same, each client is unique and needs a tailor-made solution."
Each fund in the Target Liability Bond Pooled Fund series is associated with a specific Canadian pension plan demographic profile representing different combinations of active employees and retirees. Pension plans can then tailor their allocation of assets within the series to reflect their own demographic profile and the duration of their liabilities. They can then establish the desired credit risk exposure. This series will provide small to mid-sized pension plans with access to a relevant benchmark reflecting their reality and customised risk exposure that aims to achieve sustainable long-term returns.
Roger Renaud (pictured), president of Standard Life Investments Inc, says: "Our new series of target liability pooled funds now provides pension funds of all sizes with access to a customised solution that is simple to understand and above all, effective.
“Offering the most effective risk management and liability-driven investment solutions is Standard Life Investments' top priority because it's also a top priority for our clients. Our growing portfolio of comprehensive LDI solutions will help our Canadian pension plan clients more confidently de-risk their portfolios and meet their future financial obligations.”
The series is comprised of a Short-, Mid- and Long-Term Liability Government Bond Pooled Fund. A Short- and Mid-Term Corporate Bond Pooled Fund will also be added to the series and will be available through Standard Life Investments once launched.
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