Liability Driven Investments

Top Reasons for Choosing Addenda Capital to Manage your Liability Driven Investments (LDI)

• We provide tailored LDI solutions using a collaborative approach and highly personalized service.
• We are pragmatic, adapting to market conditions and the evolving nature of our client’s goals.
• Our team is truly multidisciplinary, with strong market knowledge and analytical capabilities, bringing many perspectives and sources of information to the table.
• We are skilled at building solutions using strategies that have established solid track records.
• We can deliver added value over custom liability benchmarks.
• We incorporate ESG risk analysis into our research, as we believe it has a positive impact on investment performance over time.

We believe that:

• Customized and effective investment solutions provided in a consultative and innovative framework yield the best results for clients.

• The best LDI solutions focus on the client’s de-risking objectives but also exploit market opportunities to earn incremental return over time.

We develop LDI solutions based on these three approaches:

• Total return driven approach where various strategies are combined to optimize the expected return of a portfolio within a holistic LDI framework.
• Duration target approach, which considers liabilities and interest-rate risk while seeking alpha-generating objectives; this approach is often implemented through the effective use of derivatives.
• Liability driven approach, where interest-rate risk is tightly managed and liabilities are matched with an efficient portfolio built with proprietary immunization models.