Liability-Driven Investment Management Product Launched

July 7, 2006 ( - Innocap Investment Management, a subsidiary of National Bank of Canada has launched its new liability-driven investment (LDI) product that generates a return, net of fee, equivalent to the inflation index plus 2 % to 4 %.

In its press release, Innocap said the LDI product can be rebalanced on a monthly basis to reflect changes in global pension plans’ liabilities. Innocap and the pension fund will determine the fund’s nominal liabilities, and Innocap will create a fixed income proxy portfolio that will bridge the pension fund’s asset mix shortfall in duration.

“We have run simulations using our LDI product, and we have found that our product is an excellent proxy for real return bonds, generating attractive inflation plus returns, with excellent liquidity”, said Denis Parisien, Managing Director for Innocap Investments, in the release.

Innocap’s Web site is .