Liability-Driven Investing

Our Philosophy

Standish believes:

A successful LDI solution requires closely aligning the asset strategy with detailed liability analysis.
Each client is unique, requiring a customized asset allocation solution. While using all available investment tools, the primary investment vehicle should be the cash bonds that are most highly correlated with the liabilities.
Liability analysis, combined with client guidelines and objectives, drives the tactical and strategic asset allocation.
The LDI framework is an iterative process that re-evaluates the optimal liability hedge given changing market conditions. This is done through regular consultation between the client and portfolio managers and client service professionals.

Our Investment Process

Standish Liability Driven Investing solutions are based on the sponsor's unique objectives. Our portfolio managers work closely with our investment actuaries and third parties to develop a custom solution.

1 Assess Situation	2 Develop LDI Solution	3 Implement LDI Solution	4 Monitor LDI Solution
Plan status Active Closed Frozen Plan type Asset allocation Funded status Liability structure Contribution policy	Objectives / risk budget Liability hedge ratios Interest rate risk Quality risk Yield curve risk Asset / liability analysis Stochastic Deterministic Methodologies Hedge surplus/deficit Hedge liability return	Philosophy and team Benchmarks Duration management Trading and execution Risk management Outlook and strategy Portfolio characteristics Performance	Asset / liability reporting Asset/liability returns PPA liability FAS/IAS liability Solvency liability Funded status ratios Term structures Discount rates Asset/liability duration

For more information on Liability-Driven Investing, please contact Chris Austin at caustin@standish.com