Our Services

CI / Nexus provides a best-in-class solution to our insurance company and pension clients that increases the risk efficiency of their portfolios.

We have developed significant LDI / ALM expertise and technological capabilities, including our state of the art LDI / ALM software that drives our modelling.

Whether a client wants to execute a sophisticated risk optimized LDI strategy across multiple dimensions of interest rate risk or simply manage a traditional 60/40 asset mix, we add substantial value by managing the assets within a risk optimization framework.

With our expertise we offer various Risk Optimized Asset Management Solutions depending on your needs. We are able to successfully reduce portfolio risks based on your needs, even in difficult financial times, by focusing our solutions on five crucial components:

  • Implementation of de-risking strategies
  • Execution of LDI - including the optimization of large implicit interest rate bets
  • Execution of sophisticated immunization strategies
  • Traditional asset management using low cost segmented bond fund solutions
  • Overlay strategies

Implementation of De-risking Strategies

De-risking strategies help clients avoid locking in losses over a defined transition period. By using a systematic de-risking approach that reduces the equity allocation within tactical asset allocation bands, the asset manager retains the flexibility to respond to changing market conditions. We also implement trigger points for accelerated de-risking based on threshold asset values when the plan achieves stated funding and solvency levels (see figure below). We can also incorporate trigger points based on pre-defined objectives.

Execution of LDI Strategies That Incorporate Market Views

We work closely with our clients to cater to their risk parameters and objectives. We manage against actual liabilities, eliminating basis risk, which yield an accurate measurement of risk and results. Risk optimization and transparency of performance are also key components to our approach. We are able to maximize upside / minimize downside based on market views in a clear and focused manner while respecting the client’s portfolio objectives and risk appetite.

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