Liability Driven Investing (LDI)

Investment Philosophy

Our fixed income investment approach combines bottom-up research with top-down sector selection to consistently seek favorable, risk-adjusted results. We believe that the volatility of market prices exceeds that of fundamental asset values. This dislocation creates opportunities for investors with the skilled personnel, infrastructure and insight necessary to identify relative value generated by market inefficiencies.

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

PPM is an investment-led organization which utilizes a team-based approach to manage the assets of the portfolio. Portfolio managers work closely with asset class specialists, research analysts and traders to generate ideas and to gain greater insight on the market environment as they make investment decisions.

photo of Greg Moldovanyi
Greg Moldovanyi

Portfolio Manager

photo of Bobby Flynn
Bobby Flynn, CFA

Portfolio Manager

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.