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Liability Driven Investment

Liability-driven investing (or LDI) takes into account the factors that drive the value of assets and liabilities, seeking to increase the likelihood that the goal of the pension plan may be met while reducing the volatility, or "smoothing the path" of funding level improvement. As many funds now look towards becoming more self-sufficient, this may mean more insurance-like investment strategies. Aberdeen's experienced LDI managers have a strong insurance heritage spanning more than 25 years, and can manage a broad range of fixed-income assets against liability profiles.


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Fixed income securities are subject to certain risks including, but not limited to: interest rate (changes in interest rates may cause a decline in the market value of an investment), credit (changes in the financial condition of the issuer, borrower, counterparty, or underlying collateral), prepayment (debt issuers may repay or refinance their loans or obligations earlier than anticipated), call (some bonds allow the issuer to call a bond for redemption before it matures), and extension (principal repayments may not occur as quickly as anticipated, causing the expected maturity of a security to increase).