The Principal Financial Group unveiled a new suite of separate accounts that make it easier for defined benefit plans of all sizes to implement an LDI strategy. The Principal LDI Separate Accounts are a line-up of four fixed-income investment options of varying durations that can be combined to match the duration of a plan's liabilities.

"Until now, sponsors of small and medium-sized defined benefit plans and their financial professionals have struggled to implement an LDI strategy because typically only the largest plans had enough fixed income assets to create the customized bond portfolio needed to match the duration of a plan's liabilities," said Janet Kubik, vice president of retirement and investor services at The Principal, the number one provider of defined benefit plans. "The Principal LDI Separate Accounts provide fixed income investment options of varying durations that can be combined together so all sizes of defined benefit plans can use LDI strategies."

Each of the Principal LDI Separate Accounts offers financial professionals and their defined benefit clients a distinct duration band and an emphasis on corporate bonds.