Global Definitions Database

Access, learn and discover all terms related to the non-listed real estate sector.

Liability Driven Investment (LDI)

An investment philosophy and strategy that is designed toward gaining enough assets to cover all current and future liabilities; general approach consists of minimizing and managing liability risk followed by generating asset returns and maximizing asset performance relative to plan liability; considers a wide range of risks, including interest rate risk, inflation risk, longevity risk, credit risk, and foreign-exchange risk.

Source: NCREIF | Date: 05 September 2025 | ID: D1260 | Version: 1