Discretionary Pension Portfolio Management

As a Discretionary Pension Portfolio Manager, Capital Strategies is delegated the decision-making authority for selected investment actions, and takes full fiduciary responsibility for these actions. The authorities and delegations that are assigned to us by our clients are clearly defined in our advisory contract, plan management strategy document and investment policy. In addition, detail on constraints and processes and/or considerations for these items are included in the Investment Policy Statement.

When Capital Strategies acts as a Discretionary Pension Portfolio Manager, we keep the Committee informed and educated. We review our analyses and rationale for all decisions and provide comprehensive documentation of our processes and decisions to support the Committee’s duty to monitor us as a 3(38) adviser.

Liability Driven Investing

At Capital Strategies, we excel at managing our client’s pension investment strategies within the context of a dynamic Liability-Driven framework. The framework of pension plan management has shifted, as a result of new regulations, financial market volatility, and prolonged low interest rates. One important result of such events has been an increased focus on the strategy and process used to manage pension plans.

Liability-driven investing has received a lot of attention from plan sponsors looking to more carefully manage risks. However, the effectiveness of an LDI strategy can be enhanced by coupling LDI with a dynamic approach to asset allocation which systematically reduces risks in the plan as funded status improves.