Practical Law UK Glossary 2-366-2977 (Approx. 2 pages)
Glossary
Liability-driven investment (LDI)
In the context of pensions, a form of investment in which the main goal is to ensure that a defined benefit scheme has sufficient assets to meet its liabilities, both current and future. To this end, investment managers frequently use derivative instruments to align a scheme's income and outgoings more closely.