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Understanding LDIndex Portfolios

Pension plans have used some form of liability-driven investing (LDI) strategies for decades, as have non-profit organizations, insurance companies and other institutions. In simple terms it means to define the funding goal (the liability) and invest to meet that goal. iJoin MAP leverages this methodology to help retirement plan participants prepare for retirement income sufficiency.

We calculate the retirement liability (goal) each person has based on their age, income, savings balance, contribution rate and many other available data points. Based on this result, we assign them to one of our five target return LDIndex portfolios. These five portfolios (available as models or CITs) have corresponding risk/return attributes. We believe it’s a sophisticated, yet easy-to-use “manage it for me” solution to retirement investing.

LDIndex Portfolio Construction

At the core of our portfolio construction are enhanced, multi-dimensional or factor engineered investment vehicles. These core investments are designed to optimize risk adjusted returns in a systematically scientific, low cost, tax efficient manner.

LDIndex portfolio construction is a “Core/Satellite” structure consisting of an optimal blend of non-proprietary Factor-Derived, Style-Derived Active and Passive (index) investment vehicles. Investment selection is done via a “truth-in-labeling” style-pure analysis involving complex quantitative screening procedures. We also consider qualitative criteria, such as an investment management firm’s “People, Philosophy, Process and Performance” criteria.

Analyzing Risk

As investment managers, we use the Aladdin Risk Analyzer® to better understand portfolio risk and performance across asset classes to clarify our investment decisions.

Aladdin Risk Analyzer Tool

Aladdin Risk is the system we use at LDIntelligence to analyze risk in our LDIndex portfolio construction. The system combines sophisticated risk analytics, highly scalable processing capabilities and subject matter expertise to provide a comprehensive risk solution. It provides tools to help us understand portfolio risk and performance across asset classes to support informed investment decisions.

We’re personalizing retirement success™ and making it easy for millions of savers to get on a path to better retirement outcomes. That's iJoin.

14646 N. Kierland Boulevard, Suite 125
Scottsdale, AZ 85254

©2019 LDIntelligence. All Rights Reserved.
LDI-MAP LLC (d.b.a. iJoin) is a subsidiary of LDIntelligence LLC.
LDIntelligence is a registered investment adviser with the State of Arizona – 14646 N. Kierland Boulevard, Suite 125 Scottsdale, Arizona 85254 – (480) 300-4900.
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