May 7, 2012
By Gregory Leonberger, FSA, EA, MAAA, Director of Research
Over the last five years, Liability Driven Investing ("LDI") has grown in popularity as an investment strategy for pension plan sponsors. Our two part position paper series on LDI takes a close look at LDI strategies, with an emphasis on the "if" and "how": deciding IF an LDI strategy is appropriate for a given pension plan, and if so, HOW it should be implemented. In Part I, we examined the motivations for LDI strategies, and which types of plans are best suited to adopt an LDI mandate. Part II is intended as a resource for plan sponsors who have decided to implement an LDI strategy, and covers the practical issues surrounding implementation and maintenance, along with risks. Ultimately, the following paper should help plan sponsors decide if an LDI strategy is appropriate for their plans.
LDI Position Paper Part 2 (of 2)
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