Liability Driven Investment (LDI)

Market neutral strategies from Fidelity

At Fidelity, we believe that Liability Driven Investment ("LDI") is more a risk management and benchmark evolution than a single product or strategy. More and more of our clients are utilising advanced risk budgeting techniques to define their own specific scheme risk budgets, then looking for risk mitigation and return generation solution.

Risk mitigation

Fidelity has one of the UK's leading fixed income teams with nine portfolio managers and more than 20* research professionals in four locations globally: London, Hong Kong, Tokyo and Mumbai. We also have close working relationships with over 100* fixed income investment professionals in the US through our affiliate company, Fidelity Management and Research Co.

We have a wealth of experience internally in designing bespoke investment solutions to meet our clients' needs, working with our clients, their investment consultants and actuaries and any investment banks to tailor bond portfolios to meet clients' specific risk and reward requirements - including mitigating interest rate and inflation risk.

Return generation

At Fidelity we believe that more and more clients will develop their LDI approaches to focus on deficit reduction and the ability to generate alpha through diversified sources of return will be essential for the long term financial health of their pension scheme.

At Fidelity, we have a range of global and regional equity approaches, global and regional fixed income approaches, global real estate and market neutral strategies that can be leveraged to maximise returns for our clients.

In addition, our Diversified Growth Fund accesses other diversified and complementary sources of beta and alpha from some of the world's leading specialist managers in areas such as hedge funds, currency, commodities and infrastructure.

To find out more about our pragmatic and investment led approach to LDI, please contact us below.



*As at 30 June 2009