The objective of the NIS liability driven investing strategy is to build and maintain a portfolio that focuses on the projected liability outflows as its benchmark for the development of yield curve and interest rate strategies.
Our primary goal is to meet the benefit payment obligations of the plan on a timely basis and maintain or improve the funding status of the liability.
NIS has $11 million in liability driven investing assets under management
AS OF 9/30/19
STRATEGY AT A GLANCE
- Interest rate risk. We seek to defease interest rate risk and look to other investment tools with more predictable alpha to build surplus.
- Structural components. As a result, we are actively involved in the management of the structural components of the portfolio — sector/industry allocation, credit quality, liquidity, yield curve exposure and call structure.
- Traditional yield sectors & Treasuries. In addition to U.S. Treasuries, we utilize traditional yield sectors of the market, such as agency and corporate bonds, preferred stocks, residential and commercial mortgage-backed securities, and asset-backed securities to take advantage of their higher yields and capital gain opportunities. U.S. Treasuries provide portfolio liquidity and an occasional safe harbor during credit storms.