What is a liability-driven investment (LDI) strategy?

The liability-driven investment (LDI) strategy is often employed by defined benefit plans, which guarantee retirement payouts to those who contribute to the pension. However, individual investors can also use the LDI strategy as an approach to generate asset returns.

How does Liability-Driven Investing work?

Alternately, an investor can use an LDI approach that splits investment into two buckets; one, a fixed-income investment for consistent returns and the other, a higher risk equity investment. The greater returns offered by equities could be moved into the fixed income allocation over time. How Did Liability-Driven Investing Start?

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.

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.