---
title: Why the move to liability-driven investment?
date: 2012-04-25T08:45:24Z
modified: 2026-06-02T13:53:02Z
permalink: "https://riscura.com/uncategorized/presspress-roomwhy-move-liability-driven-investment/"
type: post
status: publish
excerpt: ""
wpid: 2823
categories:
  - Uncategorized
author:
  - RisCura
timestamp: 2026-06-02T13:53:02Z
tags:
  - Uncategorized
  - RisCura
---

The 'old school' approach to setting a pension fund’s investment strategy has usually been to set a target return and then structure the assets to try to match the actual performance with the targeted performance. This approach didn’t fully recognise the importance of meeting the fund’s future pension obligations. The success of the investment strategy was only measured on whether the portfolio outperformed some market benchmark and not a liability benchmark based on the present value of the pension fund’s obligations or liabilities as they change through time.