Liability driven investing

June 2023

Sponsors of pension plans should have one overarching goal: to ensure that all payments promised to plan participants and beneficiaries can be made. As part of this process, many plan sponsors have adopted an investment approach known as Liability Driven Investing (“LDI”).

This paper provides an overview of LDI, including an assessment of where and why it is used, how it can be implemented and maintained, along with its considerations.