LGIMA to launch Liability-Based Funds, a suite of funds designed exclusively for small, mid-sized pension plans

'Legal & General Collective Investment Trust' funds provide defined benefit pension plans access to customizable, cost-effective liability-based strategies

Nov 18, 2015, 12:00 ET from Legal & General Investment Management America, Inc.

CHICAGO, Nov. 18, 2015 /PRNewswire/ -- Legal & General Investment Management America, Inc. (LGIMA), a Chicago-based investment advisor specializing in fixed income, liability driven investment (LDI) and index strategies for the US institutional market, today announced the planned release of six new Legal & General Collective Investment Trust funds sponsored by Reliance Trust Company of Delaware, a FIS Company.

The Legal & General Liability-Based Funds are an innovative product that provides small to mid-size defined benefit pension plans access to liability-based solutions which have been used by larger counterparts for a number of years.  The Funds complement LGIMA's existing range of pooled funds and are designed to offer scalable and cost effective solutions for pension plans.

The Liability-Based Funds provide plans with a comprehensive solution in which the Funds are used as building blocks to hedge actual plan liabilities across a wide range of durations and discounting methodologies.  The Funds include both a levered and an unlevered structure to accommodate a diverse set of strategic plan objectives that would otherwise be cost prohibitive for small pension plans trying to achieve the same objective with segregated accounts.  To provide additional transparency, the Funds are benchmarked against the Bank of America Merrill Lynch US Pension indices, which track the performance of typical pension liabilities across several duration profiles to provide customized solutions that directly account for actual client liabilities and help mitigate funding status volatility.

LGIMA's Head of US Solutions, Jodan Ledford, said: "We are excited to introduce these funds to the market.  When we surveyed the full pension landscape, we found that there was not an offering that provided a level of customization to smaller pension plans commensurate with what is available to larger plans.  These liability-based funds provide a comprehensive solution set to the small and mid-sized pension market, and are a natural next step for LGIMA as they align with the LDI solutions and expertise that we currently offer larger plans."

The Legal & General Collective Investment Trust funds have an emphasis on governance and transparency; areas that have received increased attention over the past few years from regulators, consultants, and the investing community.  LGIMA is pleased to partner with Reliance Trust Company of Delaware and Citi on launching these funds.  Reliance Trust Company of Delaware serves as trustee and sponsor of the collective funds and is responsible for the establishment and on-going operation of the Liability-Based Funds.  Citi has been appointed as the custodian and fund accounting agent for the Liability-Based Funds, further strengthening the existing global relationship.

For further information, please contact:
Name: Jacquelyn Wilder
Company: RF Binder
Email: Jacquelyn.Wilder@rfbinder.com
Tel: 212 994 7543

About LGIMA: Legal & General Investment Management America, Inc. (LGIMA) is a Chicago-based registered investment advisor specializing in active fixed income, liability driven investment (LDI), and index strategies for the US institutional market. LGIMA was founded in 2006 as a wholly-owned subsidiary of Legal & General Investment Management (Holdings) Ltd. (LGIM(H)), which also owns its affiliates Legal & General Investment Management, Ltd. and LGIM International Ltd.  In May 2014, LGIMA became a wholly owned subsidiary of Legal & General Investment Management US (Holdings), Inc. (LGIMUS(H)) which is wholly owned by LGIM(H).

SOURCE Legal & General Investment Management America, Inc.