Keith MacIsaac of the Canadian Mortgage and Housing Corp. describes the results of its move to a liability-driven investment strategy.

By Rick Baert

Keith MacIsaac of the Canadian Mortgage and Housing Corp.

Keith MacIsaac

Canadian Mortgage and Housing Corp.’s decision — made over two years ago — to put more of its C$2.8 billion defined benefit plan in liability hedging assets has been a success, according to Keith MacIsaac, pension fund risk specialist at CMHC.

Increasing liability hedging as part of the pension fund’s move to a liability-driven investing, or LDI, strategy “has proven to be successful,” MacIsaac said. “It has helped improve solvency funding, improve liability hedging, reduce surplus volatility and volatility of contr