The Opportunity to Manage the Risk Inherent in Pension Plans
Liability Driven Investing provides plan sponsors the opportunity to understand and manage the risk inherent in their pension plans. Northern Trust provides customised solutions, tailored to specific goals and situations.
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.
We provide our clients with customised solutions tailored to their goals and situation. They include:
- An asset and liability analysis that identifies the current risk in the fund
- Investment strategy development based on the goals of the client
- Implementation of the investment strategy
- Ongoing monitoring and management of the investment strategy
- Reporting of the performance of the assets and liabilities
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 them 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 investing strategies. Listen now
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David Lester |
David Lester
David Lester is a Vice President at Northern Trust Global Advisors. Based in the Toronto office, David leads the asset management sales effort at Northern Trust in Canada. With a focus on providing innovative investment and outsourcing solutions to the marketplace, David will be working closely with pension plan sponsors, charitable organizations, and other institutional investors. David started his investment career in 1996 with a retail mutual fund company. Prior to joining Northern Trust, David spent 12 years at SEI, most recently as the Director of National Accounts where he lead the firm’s institutional sales and marketing efforts.
David has authored a range of articles on pension-related topics in addition to speaking at industry conferences. He is a past chair of the Ontario Regional Council of the Canadian Pension & Benefits Institute and is a member of the Toronto CFA Society.
David holds a Bachelors Degree in Mechanical Engineering from McGill University where he was awarded the British Association Medal for Great Distinction. David graduated from INSEAD in Fontainebleau France with distinction, where he received a Masters Degree in Business Administration.
This material is directed to eligible counterparties and professional clients only and should not be relied upon by retail investors. It is issued by Northern Trust Global Investments Limited, authorised and regulated by the Financial Services Authority in the United Kingdom. Registered office: 50 Bank Street, Canary Wharf, London E14 5NT, registered in England 03929218.
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