| dbo:abstract |
Liability-driven investment policies and asset management decisions are those largely determined by the sum of current and future liabilities attached to the investor, be it a household or an institution. As it purports to associate constantly both sides of the balance sheet in the investment process, it has been called a "holistic" investment methodology. In essence, the liability-driven investment strategy (LDI) is an investment strategy of a company or individual based on the cash flows needed to fund future liabilities. It is sometimes referred to as a "dedicated portfolio" strategy. It differs from a “benchmark-driven” strategy, which is based on achieving better returns than an external index such as the S&P 500 or a combination of indices that invest in the same types of asset classes. LDI is designed for situations where future liabilities can be predicted with some degree of accuracy. For individuals, the classic example would be the stream of withdrawals from a retirement portfolio that a retiree will make to pay living expenses from the date of retirement to the date of death. For companies, the classic example would be a pension fund that must make future payouts to pensioners over their expected lifetimes (see below). (en) |
| dbo:wikiPageExternalLink |
https://www.soa.org/library/monographs/retirement-systems/retirement-security/mono-2011-mrs12-ashton-paper.pdf https://papers.ssrn.com/sol3/papers.cfm%3Fabstract_id=1699347 |
| dbo:wikiPageID |
8351939 (xsd:integer) |
| dbo:wikiPageLength |
6004 (xsd:nonNegativeInteger) |
| dbo:wikiPageRevisionID |
1122621865 (xsd:integer) |
| dbo:wikiPageWikiLink |
dbr:Benchmark-driven_investment_strategy dbr:Holism dbr:Derivative_(finance) dbr:Inflation dbr:Interest_rate dbr:International_Financial_Reporting_Standards dbr:Investment_strategy dbr:Liability_(financial_accounting) dbc:Actuarial_science dbr:Dedicated_Portfolio_Theory dbr:Swap_(finance) dbc:Investment_management dbc:Pensions dbr:Financial_Accounting_Standards_Board dbr:Balance_sheet dbr:Hedge_(finance) dbc:Liability_(financial_accounting) dbr:Asset_management dbr:Bond_(finance) dbr:Stock_market_index dbr:World_Pensions_&_Investments_Forum dbr:Pension_fund dbr:Cash_flow_matching |
| dbp:wikiPageUsesTemplate |
dbt:More_citations_needed dbt:Other_uses_of dbt:Reflist dbt:Finance |
| dct:subject |
dbc:Actuarial_science dbc:Investment_management dbc:Pensions dbc:Liability_(financial_accounting) |
| rdfs:comment |
Liability-driven investment policies and asset management decisions are those largely determined by the sum of current and future liabilities attached to the investor, be it a household or an institution. As it purports to associate constantly both sides of the balance sheet in the investment process, it has been called a "holistic" investment methodology. (en) |
| rdfs:label |
Liability-driven investment strategy (en) |
| owl:sameAs |
freebase:Liability-driven investment strategy yago-res:Liability-driven investment strategy wikidata:Liability-driven investment strategy https://global.dbpedia.org/id/4q3G2 |
| prov:wasDerivedFrom |
wikipedia-en:Liability-driven_investment_strategy?oldid=1122621865&ns=0 |
| foaf:isPrimaryTopicOf |
wikipedia-en:Liability-driven_investment_strategy |
| is dbo:wikiPageDisambiguates of |
dbr:LDI |
| is dbo:wikiPageRedirects of |
dbr:Liability_driven_investment dbr:Liability_driven_investment_strategy |
| is dbo:wikiPageWikiLink of |
dbr:Benchmark-driven_investment_strategy dbr:Investment_strategy dbr:Outline_of_finance dbr:Central_bank_put dbr:Goal-based_investing dbr:Insight_Investment dbr:September_2022_United_Kingdom_mini-budget dbr:LDI dbr:Gilt-edged_securities dbr:Liability_driven_investment dbr:Liability_driven_investment_strategy |
| is foaf:primaryTopic of |
wikipedia-en:Liability-driven_investment_strategy |