Strategies and Solutions
Risk-Controlled Fixed Income
NISA believes that fixed income markets offer opportunities to capitalize on moderate inefficiencies for predictable gains. Nonetheless, we believe there are limits to the amount of excess returns that can be generated absent tracking error that compromises the strategic rationale for fixed income. NISA manages portfolio risks with low tracking error targets vis-à-vis client benchmarks, which results in high information ratio targets.
Pension Risk Management
NISA is a leader in liability-driven investing and de-risking strategies for pension plans. We believe our risk controlled style, our ability to customize, our market presence in long duration fixed income and derivatives and our extensive experience working with pension plans and their advisors makes us a compelling choice for pension risk management and completion mandates. NISA has participated in LDI and de-risking mandates since the company’s inception.
Tax-sensitive Portfolio Management*
For taxable investors, NISA believes the after-tax return, rather than the pre-tax return, is the appropriate measure of performance. Awareness of the effects of client-specific tax circumstances and the management of those taxes are fundamental to NISA’s tax-sensitive mandates. Strategies generally include loss harvesting, turnover management, dividend/interest management and considerations of state and local tax regimes.
Derivatives allow investors to achieve market exposures that are otherwise unavailable or are costly to achieve in the physical (cash) market. Strategies employed by NISA’s clients include duration overlay, equity hedging, portfolio rebalancing and commodities exposure. In an effort not to replace one risk with another, we pay particular attention to operational and counterparty risks.
NISA’s multi-asset and fixed income management in risk-controlled solutions can be employed to help DC plan sponsors build better retirement outcomes for participants. Our DC solutions team is dedicated to helping sponsors design, communicate and implement a customized target date strategy that meets the plan’s objectives for balancing wealth accumulation and retirement income. We can tailor a plan’s default option to address the key retirement risks that each participant faces: under saving, market, inflation and longevity. NISA can also work with sponsors to create customized fixed income portfolios designed to stabilize participant retirement income and help participants engage and plan with greater retirement confidence.
*NISA Investment Advisors, LLC does not purport to and does not, in any fashion, provide tax, accounting, actuarial, recordkeeping, legal, broker/dealer or any related services. You should consult your advisors with respect to these areas and the material presented herein.