Standard Life Investments offers new Target Liability Funds

Standard Life Investments, a leading global asset manager, today announced it has launched a series of Target Liability Bond Pooled Funds, making innovative and customized liability driven investment (LDI) solutions more widely available for small to midsized pension funds.

No matter the size of their funds, defined-benefit pension plan managers and sponsors are eager to de-risk their portfolios while optimizing long-term returns. Standard Life Investments' new series of daily-valued Target Liability Bond Pooled Funds now provides small to midsized pension plans with access to an innovative and effective approach. This unique LDI solution will be available initially through Standard Life Investments and Standard Life's Group Savings and Retirement Quality and Choice Investment Program.
Claude Turcot, Senior Vice-President, Quantitative Management, at Standard Life Investments Inc. said "Canadian pension plans continue to face significant short and long-term pressures, including plan deficits, interest rate risks and longevity. But while the challenges are the same, each client is unique and needs a tailor-made solution."

A Unique Approach in Canada
Through its proven expertise and quantitative research capabilities, Standard Life Investments has developed a proprietary and innovative solution that can capture and address the interest rate risks defined-benefit pension plans face.

Each fund in the Target Liability Bond Pooled Fund series is associated with a specific Canadian pension plan demographic profile representing different combinations of active employees and retirees. Pension plans can then tailor their allocation of assets within the series to reflect their own demographic profile and the duration of their liabilities. They can then establish the desired credit risk exposure. This series will provide small to midsized pension plans with access to a relevant benchmark reflecting their reality and customized risk exposure that aims to achieve sustainable long-term returns.

Roger Renaud , President of Standard Life Investments Inc, said "Our new series of target liability pooled funds now provides pension funds of all sizes with access to a customized solution that is simple to understand and above all, effective.

Offering the most effective risk management and liability-driven investment solutions is Standard Life Investments' top priority because it's also a top priority for our clients. Our growing portfolio of comprehensive LDI solutions will help our Canadian pension plan clients more confidently de-risk their portfolios and meet their future financial obligations".

The series launched today is comprised of a Short-, Mid- and Long-Term Liability Government Bond Pooled Fund. A Short- and Mid-Term Corporate Bond Pooled Fund will also be added to the series and will be available through Standard Life Investments once launched.