Conning, a leading global investment manager serving institutional
investors, today announced the launch of a free Liability-Driven
Investing (LDI) tool, the Conning Pension Risk Analyzer (Analyzer),
on its website.
This interactive tool allows pension plan sponsors and their advisers to
examine the potential risks and rewards associated with their plan's
The Analyzer helps users evaluate how different investment
strategies, including a customized LDI framework, might benefit their
plan during adverse market conditions. Additionally, the Analyzer
illustrates a process for evolving the plan's current investment
strategy toward a target strategy based on downside risk mitigation,
thereby increasing the likelihood of protecting the plan's funded status.
"Investment and risk management objectives vary across plan sponsors, as
do understandings of what an LDI approach can offer. The Conning
Pension Risk Analyzer aims to address both of these challenges by
allowing plan sponsors and their advisers to navigate through a
self-guided and easy-to-use system that is similar to many individuals'
online 401K financial planning tools," said Owais Rana, a Managing
Director and Head of Investment Solutions at Conning. "The merits of
adopting a customized LDI framework will be evident as users walk
through our six-step process."
"It is especially important for plan sponsors to review the Analyzer's
concise assessment of how well-matched a plan's assets are to its
liabilities. Our experienced LDI team is available to provide further
guidance on structuring and implementing a customized LDI strategy for
plans of all sizes, whether they are intending to implement a pension
risk transfer or maintain a closely matched strategy," added Rana
Conning is deeply committed to working with pension plans and their
advisers to offer LDI strategies tailored to client needs. In January
2017, Conning launched an innovative pooled fund suite focused solely on LDI
solutions for U.S. corporate pension plans. This pooled
fund suite, structured as a Collective Investment Trust (CIT)
vehicle, offers pension plans the option of customizing an LDI strategy
by mixing and matching the funds in order to effectively achieve
specific hedging objectives. The CIT can also be used by plans in the
context of completion management, including credit spread completion,
depending on where plans are in their de-risking glidepath.
Conning's LDI team leverages three decades of combined experience
managing and developing customized asset-liability focused investment
mandates, deep expertise in the U.S. credit markets, and the company's
award-winning risk modeling software.
Conning has made the Analyzer available at a time when the
pension industry is directing a greater portion of its governance budget
toward pension risk management. Industry reports show that at the end of
2016, the average funding level of U.S. companies' defined benefit
pension plans was around 80%. Despite strong equity returns since the
financial crisis, many pensions plans have struggled to recover from
their underfunded positions, mainly because of declining long-dated
ABOUT THE CONNING PENSION RISK ANALYZER
This Analyzer is available to pension plan managers and their
advisers at no cost at https://www.conning.com/pension-plans/liability-driven-investing.
To customize the results, a plan sponsor or consultant simply enters
basic information about their plan's liabilities and asset allocation.
The Analyzer then simulates the next year's range of financial
outcomes using Conning's GEMS® Economic Scenario Generator
software, and identifies the plan's Funded Status Value at Risk (VaR).
Using real, plan-specific data, the user can then experiment with
changes to its portfolio to see how allocations between growth and
hedging strategies might affect the plan's risk profile.
is a leading global investment management firm with nearly $109 billion
in global assets under management as of December 31, 2016*. With a long
history of serving the insurance industry, Conning supports
institutional investors, including pension plans, with investment
solutions and asset management offerings, award-winning risk modeling
software, and industry research. Founded in 1912, Conning has offices in
Boston, Cologne, Hartford, Hong Kong, London, New York, and Tokyo.
*As of December 31, 2016, represents the combined global assets under
management for the affiliated firms under Conning Holdings Limited, and
Cathay Securities Investment Trust Co., Ltd. ("SITE"). SITE reports
internally into Conning Asia Pacific Limited, but is a separate legal
entity under Cathay Financial Holding Co., Ltd. which is the ultimate
controlling parent of all Conning entities.
GEMS® is a registered trademark of Conning, Inc. Copyright 1990-2017
Conning, Inc. All rights reserved. GEMS® is exclusively published,
licensed and owned by Conning, Inc.
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