LIABILITY-DRIVEN INVESTING
Find the solution to your plan’s LDI puzzle.
LIABILITY-DRIVEN INVESTING
An analyst's eye view of the risks ahead for plan sponsors
WHY CAPITAL GROUP?
We aim to limit downside risk.
We have a consistent and risk-aware investment approach that puts an emphasis on limiting downside risk by deep credit research. Capital Group has managed bond portfolios since 1973 and long duration strategies since 1998.
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Experience
Scale, experience and client-aligned.
$397.2B
in fixed income assets under management.¹
26 years
average portfolio manager experience.2
1998
year when we began managing long duration portfolios.
1Assets under management as of June 30, 2020. Fixed income assets managed by Capital Fixed Income Investors.
2As of December 31, 2019. -
Deep credit research
Finding return through research.
Research is key to helping to avoid downgrades and finding excess return in LDI. And our risk-adjusted results speak for themselves. Our goal is to help clients match their liabilities, narrow funding gaps, and lower their contributions.
Sources of potential excess returns
We expect issuer and sector selection to be the main drivers of our returns.
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Holistic portfolio construction
Constructing a well-established process.
Our investment committee seeks investment managers who have repeatable processes and can clearly demonstrate how they pursue superior results.
We draw upon a well-established portfolio construction process including:
- Diverse ideas, high-conviction portfolio construction approach
- Multidimensional approach to risk management
- Bottom-up credit decision-making is primary source of excess return
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Investment results
Delivering superior results.
Our primary focus is superior investor outcomes through rigorous fundamental research.
Through rigorous fundamental research, we have helped investors pursue superior investment outcomes, including:
- Strong long-term investment results1
- Top-quartile information ratio2
- Extended track record of returns
1Based on Capital Group Long Duration Credit composite versus Bloomberg Barclays Long Credit Index 3-year, 5-year and lifetime returns as of June 30, 2020. Composite inception date is February 1, 2010.
2Based on 3-, 5- and 7-year information ratio as of June 30, 2020 for the Capital Group Long Duration Credit Composite calculated against the Bloomberg Barclays U.S. Long Credit Index with percentile ranks relative to the eVestment Long Credit Universe. Capital Group Long Duration Credit Composite is represented by gross returns. Sources: Bloomberg Investment Services Ltd., eVestment Alliance.
Past results are no guarantee of results in future periods.
© 2012-2020 eVestment Alliance, LLC. All Rights Reserved. EVestment Alliance and its affiliated entities collect information directly from investment management firms and other sources believed to be reliable, however eVestment does not guarantee or warrant the accuracy, timeliness, or completeness of the information provided and is not responsible for any errors or omissions. Bloomberg Index Services Ltd.
Bloomberg Barclays U.S. Long Credit Index is a market-value weighted index that tracks the total return results of publicly issued U.S. corporate and specified foreign debentures and secured notes that meet the specified maturity, liquidity, and quality requirements, with maturities of 10 years or more. To qualify, bonds must be SEC-registered and must be an investment grade security. This index is unmanaged, and its results include reinvested distributions but do not reflect the effect of sales charges, account fees, expenses or U.S. federal income taxes.
Bloomberg® is a trademark of Bloomberg Finance L.P. (collectively with its affiliates, “Bloomberg”). Barclays® is a trademark of Barclays Bank Plc (collectively with its affiliates, “Barclays”), used under license. Neither Bloomberg nor Barclays approves or endorses this material, guarantees the accuracy or completeness of any information herein and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith.
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OUR TEAM
Capital Group’s LDI Solutions Team.
Our dedicated LDI Solutions Team has experience in pension plan risk management across assets and liabilities and can help address your plan's unique needs.
Gary Veerman
Head of LDI Solutions
Colyar Pridgen
Senior LDI Strategist
Greg Garrett
LDI Investment Director
Chris Anast, CFA
Senior Retirement Strategist
James Tang
LDI Solutions Analyst
Reflects current team as of June 30, 2020. Investment directors do not have portfolio management responsibilities in the strategy.
OUR CAPABILITIES
Find the right mix for the right outcomes.
Risk Management
Access dedicated specialists with experience in pension plan risk management across assets and liabilities.
Custom Strategy
Create a custom strategy based on your plan’s specific goals and objectives.
Risk Evaluation
Glide path construction support, hedge ratio and risk tolerance evaluation.
Diagnostic Support
Evaluate asset allocation, risk decomposition, stress testing and more across your entire plan.
Reporting
Find custom total plan reports, including funded status attribution.
Thought Leadership
Discover a solution to your specific challenge with white papers, conference participation and custom analysis.
Liability-driven investment insights
4Q AND 2020 WORLD MARKETS REVIEWS
LIABILITY-DRIVEN INVESTMENTS
Long duration credit update for the fourth quarter of 2020
Greg Garrett, LDI Investment Director
Connect with our LDI team.
Our dedicated LDI Solutions Team has experience in pension plan risk management across assets and liabilities and can help address your plan's unique needs.
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the mutual fund prospectuses and summary prospectuses, which can be obtained from a financial professional, and should be read carefully before investing. Similar information about collective investment trusts can be obtained from Capital Group or participants’ plan provider or employer.
This investment strategy and/or related material is designed for use solely by Qualified Purchasers, institutional investors and consultants.
This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.
Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. This information is intended to highlight issues and should not be considered advice, an endorsement or a recommendation.
All Capital Group trademarks are registered trademarks owned by The Capital Group Companies, Inc. or an affiliated company. All other company and product names mentioned are the trademarks or registered trademarks of their respective companies.