Portfolio Solutions Group

Challenge – A life (re)insurer sought higher returns through a capital-efficient, cashflow-aware portfolio that could access some strong opportunities across public and private credit, while effectively managing interest rate and FX risk.

Solution – L&G designed an integrated public and private credit portfolio, enabling access to a broader investment grade opportunity set. Active cross-asset, spread and duration positioning was combined with interest rate and currency hedging supported by a robust collateral framework. 

Outcome – By managing public and private credit as one portfolio, the reinsurer gained greater flexibility to allocate to potentially the most attractive risk-adjusted opportunities as markets evolved, rather than optimising individual asset classes in isolation.

Case study shown for illustrative purposes only.

Challenge – DB pension schemes are adapting to higher funding levels and more choice in their long-term funding objectives. Many schemes are considering how they can invest to extract surplus above a low-dependency funding threshold, whilst supporting payment of members’ benefits.

Solution – L&G has designed a sustainable run-on surplus framework, adapting experience in cashflow-driven investing for insurance companies, the use of dynamic discount rates and a diversified asset allocation approach to target surplus generation with downside risk mitigation, and the flexibility to pivot to buyout when relative value is attractive.

Outcome – Increased transparency and client confidence that aims to deliver attractive surplus generation and downside risk mitigation.

Case study shown for illustrative purposes only.

Our multi-manager solutions team helps clients access specialist investment capabilities across public and private markets. Through an open-architecture approach, we combine rigorous manager research, selection and oversight with practical portfolio implementation.

As an asset manager, we bring a perspective that is closer to markets than a traditional investment consulting model. Our investment expertise and day-to-day market insight enable us to assess managers through the lens of a practitioner, providing robust challenge and helping clients identify and implement specialist investment opportunities.

We also support clients in managing illiquid asset portfolios, including liquidity planning, portfolio restructuring and managed asset sales, helping them navigate complexity and align investments with their wider portfolio objectives.