Standard Life Investments

Liability-driven investment

In recent years, increasing numbers of institutional investors have adopted liability-driven investment (LDI) strategies that aim to accumulate sufficient funding to meet both current and future liabilities. In particular, defined benefit pension plans have sought tailored LDI solutions that will deliver sufficient returns in order to maintain guaranteed pension income.

At Standard Life Investments, we have longstanding experience in constructing and managing flexible, client-specific LDI solutions. For example, in 2005 we developed a ‘liabilities-plus’ strategy for the pension plan of our parent group, Standard Life. During a particularly difficult time for financial markets, it has provided significant downside protection and helped the plan’s assets remain in touch with liabilities.

We are able to offer our clients tailored LDI solutions through our extensive skill-set and expertise across a range of asset classes including fixed income and multi-asset investing. We also have extensive experience using derivatives to achieve our clients’ goals. To find out how we can help build an LDI solution that meets your requirements, please get in touch.