Liability Aware Investing (LAI), is an investment framework for managing and potentially exploiting the various risks faced by investors who have specific liabilities to meet from their assets.

We refer to our approach as Liability Aware Investing (“LAI”).  LAI is a framework for proactively managing the various liability risks and investment return requirements that are faced by defined benefit pension schemes and insurance companies, as they seek to meet their payment obligations.

LAI is a strategic priority at Aberdeen Standard Investments and we have invested significant resource and experience to ensure that we are ideally placed to work in partnership with our clients and deliver the solutions and service that they are looking for. 

Our depth of capability that we have in LDI and Fixed Income (including liquids and illiquids), combined with our insurance heritage, ensure that we are perfectly placed to not only help clients with their existing LDI requirements but also guide them to their “end game”, be that self-sufficiency or buyout-ready solutions.

We believe that we provide a compelling LAI offering as a result of our optimum scale, our experience and our understanding and drive to meet our clients’ ambitions.

• Scale matters: As one of the largest investment houses globally, with a comprehensive range of asset class expertise at our disposal, we can experience all of the benefits of scale including unbeaten market access.  However, our optimum size enables us to remain nimble with our LDI portfolios and therefore ensure that our clients benefit from the profitable opportunities that markets present.
• Experience matters:  We have a long history of managing LAI solutions.  Our insurance heritage and experience of managing annuities also naturally extends to delivering LDI and CDI solutions for pension schemes.  We have a compelling combination of expertise and experience that is essential to manage LAI solutions successfully, and we currently manage c. £50 billion across a variety of LAI mandates.
• Your ambitions matter: At the very heart of our investment philosophy is a passionate and fiercely held belief that the best way to serve our clients is through a dynamic and agile investment process that puts their interests front and centre. We recognise that all clients are unique and work with them to meet their specific requirements with bespoke solutions, either through segregated mandates or our innovative pooled fund range.

We use our skills and expertise to help our clients achieve their ambitions, by delivering on the core requirements of a modern LDI manager, but also delivering more.  Great emphasis is placed upon rigorous internal investment and risk management processes, fostering a consistent culture of high professional standards and integrity. 

We understand that a robust, disciplined framework and independent oversight are essential for the ongoing management of LAI solutions.

Find out about our Integrated Liability Plus solutions.

Introduction to ILPS

What is Liability Aware Investing?

Standard Life Case Study