What is Liability-Driven Investing (LDI)?

This material is proprietary and may not be reproduced, transferred, or distributed in any form without prior written permission from Russell Investments. It is delivered on an "as is" basis without warranty. Liability-driven investing, or LDI, is an investment strategy that focuses on matching assets with current and future liabilities.

Why should you choose Russell Investments for liability-driven investing?

To better manage duration and interest rate risk on plan liabilities. Why choose Russell Investments for liability-driven investing? Good strategy requires effective implementation that can both contribute to returns and reduce risk. This is where we excel.

What are liability-driven investment policies & asset management decisions?

Liability-driven investment policies and asset management decisions are those largely determined by the sum of current and future liabilities attached to the investor, be it a household or an institution.

What is the difference between liability-driven and equity-driven investing?

This rate of return is typically based on a benchmark from a broad-based equity index, such as the S&P 500® Index—with a goal of generating returns in excess of the benchmark. Liability-driven investing, by contrast, focuses on aligning the plan’s assets with the projected benefit obligations, or liabilities, due to plan participants.