The investment, pensions and benefits briefings library

Overview:

Liability Driven Investing, or LDI, is characterised by a focus on reducing the market risks of the funding status of a pension scheme in the most efficient way. This approach to investing encompasses an increasingly broad universe of investment strategies which have evolved dramatically over the past decade. In this article we borrow terminology from the IT arena to examine the three main iterations of LDI strategies - LDI 1.0, 2.0 and 3.0 - evoking their main properties, reasoning within a historical context, and finally, highlighting their principal advantages and drawbacks.

• Tags:
• Liability Driven Investing,
• LDI.