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Liability Driven Investments (LDI)

Liability Driven Investments (LDI)

Interest-rate risk management: the basis of sound balance sheet management

Key points:

  • More than 20 years’ experience in customized interest-rate matching solutions
  • Specialist and experienced team from the Netherlands that manages interest-rate risk for EUR 40 billion in pension & insurance liabilities
  • Pioneer in the central clearing of interest-rate swaps since 2011

Philosophy

The cornerstone of our philosophy for the matching portfolio is based on maximizing matching effectiveness and minimizing investment risk. This approach ensures that the portfolio behaves as expected during the design: in a matching portfolio, we do not like surprises.

Risk management is the basis of the matching portfolio. The investment objective, the benchmark and any performance drivers are based on in-depth fundamental and quantitative research and are adapted to individual investment objectives and convictions, and the matching philosophy of our clients.

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Process

Our matching portfolios feature a transparent investment process in which the portfolio is constructed in consultation with the client and adapted to the client’s strategic policy and specific risk tolerances. The investment process has a long-term horizon and is designed to avoid unnecessary transaction costs.

Our approach to the management of matching portfolios is based on a ‘buy and maintain’ strategy. We devote much attention to the construction phase (‘buy’), in which we design the portfolio and the investment process in consultation with the client. Continuous monitoring (‘maintain’) of the portfolio ensures that the matching is effective and that liquidity and the desired credit quality are maintained. Providing a high-quality service is also an essential element of our LDI proposition.

Team

The Global Macro team has experience with the management of matching portfolios since 1998. The Dutch team has extensive experience in fundamental and quantitative management of both bonds and derivatives, is based in Rotterdam and has in-depth knowledge of the pension and insurance market. The portfolio managers work closely with specialists in trading, regulation, risk management and corporate bonds.

Get in touch

Contact us if you would like to know more about this investment solution.

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Disclaimer

Please read this important information before proceeding further. It contains legal and regulatory notices relevant to the information contained on this website.

The information contained in the Website is NOT FOR RETAIL CLIENTS - The information contained in the Website is solely intended for professional investors, defined as investors which (1) qualify as professional clients within the meaning of the Markets in Financial Instruments Directive (MiFID), (2) have requested to be treated as professional clients within the meaning of the MiFID or (3) are authorized to receive such information under any other applicable laws. The value of the investments may fluctuate. Past performance is no guarantee of future results. Investors may not get back the amount originally invested. Neither Robeco Institutional Asset Management B.V. nor any of its affiliates guarantees the performance or the future returns of any investments. If the currency in which the past performance is displayed differs from the currency of the country in which you reside, then you should be aware that due to exchange rate fluctuations the performance shown may increase or decrease if converted into your local currency.

In the UK, Robeco Institutional Asset Management B.V. (“ROBECO”) only markets its funds to institutional clients and professional investors. Private investors seeking information about ROBECO should visit our corporate website www.robeco.com or contact their financial adviser. ROBECO will not be liable for any damages or losses suffered by private investors accessing these areas.

In the UK, ROBECO Funds has marketing approval for the funds listed on this website, all of which are UCITS funds. ROBECO is authorized by the AFM and subject to limited regulation by the Financial Conduct Authority. Details about the extent of our regulation by the Financial Conduct Authority are available from us on request.

Many of the protections provided by the United Kingdom regulatory framework may not apply to investments in ROBECO Funds, including access to the Financial Services Compensation Scheme and the Financial Ombudsman Service. No representation, warranty or undertaking is given as to the accuracy or completeness of the information on this website.

If you are not an institutional client or professional investor you should therefore not proceed. By proceeding please note that we will be treating you as a professional client for regulatory purposes and you agree to be bound by our terms and conditions.

If you do not accept these terms and conditions, as well as the terms of use of the website, please do not continue to use or access any pages on this website.

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