In for the duration

Liability-driven investment has long been a buzzword among European corporate pension funds and their dealers. Now, the concept is starting to catch on in the US. Jayne Jung talks to some early adopters

Walk into any industry conference on pensions in Europe, and liability-driven investment (LDI) is bound to feature fairly prominently. The technique, where the risk profile of a firm's pension liabilities is used as a basis for making its investment decisions, has been increasing in popularity in Europe for the past two years, with a growing list of big-name firms adopting LDI strategies in one form or another. In the US, however, pension fund managers have been a little more sceptical about the