Managing Exposures EMEA

Superannuation fund mergers

How Russell Investments as transition manager added value by providing transparency on costs and minimised out-of-market risk when liquidating two European small cap. equity portfolios.

Asset-liability study

We set the specific liability hedge ratio for the LDI strategy based on key rate durations and sponsor desire to minimize interest rate risk and credit risk.

Risk minimization

Monitoring of funded status and key performance reporting statistics of the pension plan delivered in the Pension Report Card.

Pension Report Card

Monitoring of the holdings-level risk relative to the plan liability through our Surplus Risk Tool (SRT), which calculates the Value at Risk (VaR) and stress scenarios for pension plans.

Risk monitoring

Using knowledge gained from our 30+ years as an investment manager

Case study 1

Using knowledge gained from our 40+ years as consultants with major pension plans

Case study 3

Using our team of experienced and credentialed professionals

Minimising cost and risk is always important, but when over 15 different parties are involved in a complex merger of two pension schemes, a robust project management platform and complete transparency can be of equal importance.

Manager research

We utilize a combination of Target Duration LDI, Treasury STRIPS, long government/credit, and derivative exposures (as appropriate) to construct a portfolio suited to meet an individual plan sponsor's liability hedging goal.

Portfolio construction

As one of the largest providers of derivative overlays, we have the ability to provide additional flexibility in LDI considerations. We are capital efficient in our hedging strategies which keeps more of your physical dollars working harder in other asset classes.

Derivative overlays

Funds and portfolios are managed dynamically to take advantage of and respond to market opportunities.

Flexibility

We serve as LDI completion manager as needed to provide oversight of third-party managers and seek to provide effective implementation of target strategies.

Implementation partner

How a manager with broad implementation skills across transition management, interim asset management, overlay services and foreign exchange can act as an extension to a client team, improving risk management, and facilitating the client focusing on investment issues and less on onerous day-to-day operational tasks.

Tenure & experience

In-depth knowledge of regional pension regulations and environment

Regional savvy

Crucial knowledge of plan design and the impact on strategy and investments (different management strategies for open pension plans vs. closed or frozen plan design, cash balance plans, etc.)

Expert investors

Liquidating illiquid equity portfolios

Case study 2

Dedicated implementation partner

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