Liability Driven Investing (LDI) Strategy Overview
OBJECTIVE
Focuses primarily on sector selection and individual security selection and to a lesser extent, duration and yield curve management
BENCHMARK
ICE BofA Custom Q4AS Index
STRATEGY INCEPTION
May 1, 2011
Highlights
- Invests primarily in US dollar-denominated investment grade corporate securities
Has flexibility to invest in other asset classes and sectors, including US dollar-denominated sovereign debt, US Treasury and US agency securities as well as non-US dollar-denominated corporate sovereign debt
Has the ability to successfully manage to client-specified benchmarks including the Bloomberg Barclays US Government/Credit Bond Index
Portfolio Managers
EXPERIENCED TEAM
Clients benefit from a team of seasoned portfolio managers who are collectively responsible for the stewardship of their assets. Working together with credit analysts and traders to filter market information, generate and discuss new investment ideas, the team seeks to identify the best relative value opportunities for our clients.
Our Insights
Any “ICE” or “ICE index” referenced herein (the “Index”) is a product of ICE Data Indices, LLC (“ICE Data”) and are used with permission. ICE® is a registered trademark of ICE Data or its affiliates. Where applicable, BofA® is a registered trademark of Bank of America Corporation licensed by Bank of America Corporation and its affiliates ("BofA") and may not be used without BofA’s prior written approval. ICE Data, its affiliates and their respective third party suppliers disclaim any and all warranties and representations, express and/or implied, including any warranties of merchantability or fitness for a particular purpose or use, including the indices, index data and any data included in, related to, or derived therefrom. Neither ICE Data, its affiliates nor their respective third party suppliers shall be subject to any damages or liability with respect to the adequacy, accuracy, timeliness or completeness of the indices or the index data or any component thereof, and the indices and index data and all components thereof are provided on an “as is” basis and your use is at your own risk. Inclusion of a security within an index is not a recommendation by ICE Data to buy, sell, or hold such security, nor is it considered to be investment advice. ICE Data, its affiliates and their respective third party suppliers do not sponsor, endorse, or recommend PPM, or any of its products or services.
The ICE BofA Custom Q4AS Index provides a custom measure of investment grade corporate bonds. It is constructed based on the ICE BofA US Corporate Bond Index with the following components removed: securities with less than 10 years remaining term to final maturity, less than $300M outstanding, BBB- and BBB rated bonds and subordinated debt. It also excludes Tobacco and Controversial Weapons companies. Each issuer is capped to 3% of the benchmark. For comparison purposes, the index is fully invested, which includes reinvestment of income. Benchmark returns are not covered by the report of independent verifiers. The returns for this unmanaged index do not include any management fees or other costs aside from transaction costs, which were incorporated into index returns beginning 1 July 2022.
