October 9, 2012 (PLANSPONSOR.com) – Principal Financial Group is offering a suite of separate accounts designed to help defined benefit (DB) plans of all sizes implement a liability-driven investing (LDI) strategy.
The Principal LDI Separate Accounts are a lineup of four fixed-income investment options of varying durations that can be combined to match the duration of a plan’s liabilities. Each of the Principal LDI Separate Accounts offers financial professionals and their defined benefit clients a distinct duration band and an emphasis on corporate bonds.
“Until now, sponsors of small and medium-sized defined benefit plans and their financial professionals have struggled to implement an LDI strategy because typically only the largest plans had enough fixed-income assets to create the customized bond portfolio needed to match the duration of a plan’s liabilities,” said Janet Kubik, vice president of retirement and investor services at The Principal. “The Principal LDI Separate Accounts provide fixed-income investment options of varying durations that can be combined together so all sizes of defined benefit plans can use LDI strategies.”
The LDI Separate Accounts are also supported by a due diligence process to help plan sponsors manage their investment-related fiduciary responsibilities. More information is here.