7:30 am - 8:30 am Registration and Networking Breakfast 8:30 am - 8:40 am Opening Remarks: LDI Overview David Kelly, FIA, FSA, EA, CFA [Conference Chair] Partner Hewitt EnnisKnupp, Inc. 8:40 am - 9:00 am New Research on Risk Analysis There s more pressure than ever when it comes to risk analysis and management of the plan. To help ease some of that burden, plan sponsors will gain access to some brand new research. These new findings take a look at how things have been analyzed to date and how that could soon change, netting a deeper, overall view of the plan that s never before been seen. The session will close out with recommendations on what companies should be prioritizing in terms of mitigating risk in 2015. Peter Zangari Ph.D. Managing Director MSCI Portfolio Management Analytics 9:00 am - 9:40 am WORKSHOP: Down, Set, Hut! Quarterbacking your LDI Program A successful LDI program can benefit from a skillful quarterback who helps plan sponsors ensure that hedging program is achieving intended exposures customized to the plan s liability and that it evolves in a coordinated way as liabilities change. An LDI quarterback should have the capabilities to understand what liability should be hedged, manage physical bonds and derivatives in custom completion portfolios relative to liabilities, and monitor the plan s funded status on a daily basis. Finding a partner who can deliver much-needed attention to details such as overseeing benefit payments and managers actual exposures to make adjustments along a de-risking glide-path is possible. This session will show you where to look when recruiting someone with the right skill-set and how to assemble a winning team capable of delivering consistently improved retirement outcomes for your plan and its participants. Martin Jaugietis, CFA Managing Director, LDI Solutions Russell Investments
9:40 am 10:20 am CASE STUDY: From Start to Finish - How a Manager, Consultant and Plan Sponsor Teamed Up to Build a Customized De-Risking Program Nuveen s case study will review the process that the team (manager, consultant and plan sponsor) undertook to develop a highly customized completion management / LDI program for the plan. We will detail the initial assessment and comprehensive risk analysis phases as well as the strategy development and implementation phases. The speakers will discuss the obtacles faced during the process and how they managed to overcome challenges. Richard Benck, MS, CPA, CIA Vice President, Investment & Risk Management Unimin Corporation Michael O Rourke Executive Director - Investments, Financial Advisor Oppenheimer & Co. Inc David R. Wilson, CFA Managing Director, Head of Institutional Solutions Group 10:20 am - 11:00 am WORKSHOP: De-risking the Plan - LDI Made Simple As plan sponsors continue to embrace LDI, customized solutions of various levels of sophistication are becoming increasingly prevalent. While each plan may entail unique characteristics, in this session we demonstrate how much can really be achieved using only five building blocks. We later also examine how plain vanilla derivative instruments can be used to further enhance the solution. Nicholas Savoulides, Ph.D., CFA Vice President, Portfolio Manager and Senior LDI Strategist Loomis, Sayles & Company, L.P. 11:00 am 11:20 am Networking Break 11:20 am 12:00 pm WORKSHOP: Managed Volatility and LDI A Holistic Plan Solution Many investment strategies make the assumption that market risk is stable. Unfortunately, that assumption has proven to be unrealistic. When market volatility is high, the chance of severe loss increases substantially. Instead of passively accepting risk, managed volatility strategies attempt to control risk by proactively adjusting the portfolio as market conditions change. The end result is a more consistent experience that can be tailored to an investor s unique risk profile. This workshop intends to examine, in case study format, de-risking strategies that can be employed by plan sponsors and how managed volatility strategies can complement their hedging programs through mitigating the downside risk of return-seeking portfolios. James A. Colon, CFA Vice President, Portfolio Manager and Solutions Strategist David R. Wilson, CFA Managing Director, Head of Institutional Solutions Group
12:00 pm 12:40 pm CASE STUDY: The Benefits of Appointing an LDI Quarterback / Plan Risk Manager This session will explore the rationale behind why the Duke Energy Master Retirement Trust chose to appoint an LDI Quarterback / Plan Risk Manager and how the structure of its portfolio has evolved and become more customized as its funded status has improved. Also discussed will be the benefits the plan has seen since appointing its LDI Quarterback/Plan Risk Manager in terms of faster and more efficient implementation, more frequent and more detailed ongoing monitoring relative to liabilities, and improved control and oversight. Allen Carrick Director, Long Term Investments Duke Energy Corporation Martin Jaugietis, CFA Managing Director, LDI Solutions Russell Investments 12:40 pm - 1:50 pm Networking Luncheon 1:50 pm 2:30 pm KEYNOTE: Re-Visioning Retirement: New Timing, New Purpose, New Planning, New Funding With the convergence of rising longevity, today s uncertain economy, and insufficient savings by many, the retirement clock has been reset. But highly acclaimed current Age Wave research reveals a surprising finding: This could be a good thing, for plan sponsors and ultimately plan participants. This presentation will explore: Why financial peace of mind has become far more important than wealth in the new American dream. What impact the modern family will have to and through retirement? How women s rising financial power is transforming their attitudes and behavior toward money, their intergenerational dynamics and the field of retirement planning. How the adult lifestage demands of eldercare, sibling care, grandparenthood, singlehood and rehirement will dramatically impact retirement preparation and funding. We ll also discuss the guidance plan participants now seek, many times from their employers, to safeguard a successful retirement while avoiding the biggest retirement wildcards that could shatter their dreams. Dan Veto Senior Advisor Age Wave
2:30 pm - 3:10 pm WORKSHOP: Waiting for Godot Besides Rates, What Matters? While many plan sponsors have been preparing or implementing LDI programs, some have been waiting for interest rates to rise. When establishing and monitoring an LDI program, interest rates are but one factor to consider. At, we have counseled plan sponsors on issues ranging from completion manager considerations and unique characteristics of cash balance vs. traditional plans to the impact of the new mortality tables, corporate bond supply concerns and equity risk. In this presentation, we will discuss taking a holistic approach to hedging pension financial risks. The level of rates is only one piece of the LDI puzzle. Andrew Catalan, CFA Managing Director, Liability Driven Investing David Leduc, CFA Chief Investment Officer Andrew Wozniak, CFA, ASA Head of Fiduciary Solutions, Investment Strategy and Solutions Group BNY Mellon Investment Management/ 3:10 pm 3:50 pm WORKSHOP: Are your Risk Tolerance and LDI Glidepath in Sync? As defined benefit plan sponsors continue with derisking, they will need to ensure that their glide paths are wellmatched not just to plan liabilities but also to the size of the plan relative to the sponsor s balance sheet, the cyclicality of the plan sponsor s business revenues and their correlation to asset returns, and whether the plan is closed or open. This workshop addresses these factors in detail and presents a quantitative approach to incorporating them into glide path design. E. Luke Farrell Senior Vice President, LDI/Credit Solutions Wesley Phoa Fixed-Income Portfolio Manager and Asset Allocation Strategist 3:50 pm 4:10 pm Afternoon Networking Break
4:10 pm 4:50 pm CASE STUDY: Evolving Solutions in LDI - Factors to Consider During Implementation During this case study, Loomis Sayles will host a discussion with their client from The Goodyear Tire & Rubber Company that focuses on various decisions and factors considered in developing and evolving a LDI solution. We will examine Goodyear s efforts to promote pension contribution stabilization in Washington, the decision-making process of funding pension obligations with debt, the role of project management tools to manage the process across pension stakeholders, as well as how appropriate performance objectives for investment managers have been established in their LDI portfolio. Richard J. Bruder, CFA Vice President and Client Portfolio Manager Loomis, Sayles & Company, L.P. David Jesse Senior Director, Global Capital Markets The Goodyear Tire & Rubber Company 4:50 pm 5:30 pm PANEL DISCUSSION: Liability Driven Investing for Every Type of Plan This final session will be an engaging summary discussion with the audience about the tools discussed throughout the day. Learn how an LDI strategy could prove successful for various types of plan situations and designs including: DB plans Cash balance plans Hybrid use within a DC plan Moderator: Panelists: David Kelly, FIA, FSA, EA, CFA Partner Hewitt EnnisKnupp, Inc. Andrew Catalan, CFA Managing Director, Liability Driven Investing E. Luke Farrell Senior Vice President, LDI/Credit Solutions Matthew Zumbach, CFA Director, Portfolio Manager of Investments Aon Corporation 5:30 pm 6:30 pm Closing Cocktail Reception