While it’s true that various institution types include liability driven investing (LDI) strategies in their arsenal, among those that do corporate defined benefit (DB) pension plans are the bellwether. According to a review of 1,400 corporate, public, and endowment and foundation plans by Investment Metrics, corporate DBs have “aggressively incorporated a liability-driven investing approach” since the beginning of 2014 through Q2 2018. Evidence of this can be seen in corporate plans’ “significant increase in U.S. fixed income allocation,” which rose by about 10% during that time period. At the same time, allocations by corporate plans to U.S. equities declined about 7%. 

[2019]