FTFM To many, the activity that has surrounded the development of liability driven investment in the UK, has been somewhat overplayed. LDI is, after all, a mindset for prudent investment within an acceptable risk budget and with the future liabilities of the pension scheme in mind. As far as many pension scheme managers, trustees and their advisers are concerned, this was the manner in which they had always invested.
Yet, by the end of 2002, most schemes were in the red and with no apparent exit strategy, and they had to come up with some new ideas.
