Liability-driven investing (LDI)

Liability driven investment (LDI) is a strategic approach in which current and future liabilities of the scheme, as well as its assets, guide decision-making. This holistic process looks to reduce risk, whilst maintaining gains, to optimise the funded position of the plan. 

A tailored strategy

Effective LDI can be the key to successfully minimising the funding level volatility of your pension scheme. Our tailored approach looks to deliver:

• An improved ability to meet long-term goals
• Timely decision making, supported by portfolio modeling and stress testing
• Streamlined implementation through an efficient, integrated model
• A more precise match to your liabilities through customised, active implementation

We’ll work with you to build the right strategy to meet your scheme’s goals with a thorough understanding of:

• The impact of scheme contributions on your organisation
• The projected growth of your scheme’s liabilities 
• Volatility factors that may affect your scheme

A customised, active LDI solution 

A sound strategy can only be effective with the proper tools to implement it. And because liabilities vary in all plans, a customised and active approach to LDI execution is critical.

We have developed and implemented bespoke LDI strategies for hundreds of schemes globally. There are nearly 300 experts with actuarial, corporate finance, capital markets, economic and investment backgrounds monitoring our clients’ LDI portfolios and their implementation.
 

This document contains marketing material about our fiduciary management service. This document does not represent impartial advice on this service. In certain cases, you are required to conduct a competitive tender process prior to appointing a fiduciary manager. Guidance on running a tender process is available from the Pensions Regulator