In many respects, liability-driven investment (LDI) is a simple concept - a fund bases its investment decisions on the profile of its liabilities, with the aim of matching the two. However, speak to 20 pension funds, and you tend to get 20 ever-so-slightly different definitions.
To some extent, that's to be expected. Every fund's liabilities are unique, so the LDI strategies they undertake can be radically different. Those with large funding gaps, for instance, would most likely include a sizeabl