LDI Mandates

LDI (Liability-Driven Investment) mandates are investment strategies designed to align a pension plan’s assets with its future liabilities, such as guaranteed payments to retirees. Instead of focusing solely on growth, LDI mandates prioritize minimizing the risk of funding shortfalls by investing in assets that match the timing and amount of expected liabilities, like bonds that pay out at specific future dates. This approach helps ensure that the pension plan can meet its obligations, providing more predictable outcomes and reducing exposure to market volatility that could threaten financial stability.