Liability-driven investing has become increasingly popular across Europe and the U.S. as demographics present growing challenges for many pension plans. Still, there is an ongoing debate about when, and how much a plan sponsor should use LDI. Some argue that the current low rate environment makes LDI too “expensive” although many believe that using LDI to fund a portion of their liabilities allows pension plans to invest more aggressively elsewhere.
While the low interest rate environment is likely to stay with us for quite some time, there will no doubt continue to be periods of volatility in the months and years ahead. Improving risk management and leveraging the right technology can have an important impact on results. From discussions with our clients, Imagine Software has identified the 12 key questions LDI managers should be asking and we provide answers in this ebook while highlighting where analytics and technology can help to address these issues.