How we structure LDI clarity
Most users first encounter LDI as a technical puzzle. Our methodology approaches it in layers: starting with real-world context, then spiraling into technical depth as the user’s needs change.
How we teach LDI Methodology
Key steps in our process
Grounding in real-world precedent
Layered terminology approach
Key terms and technical definitions are explained using both plain language and technical vocabulary.
Revisiting past lessons for depth
Each concept is revisited using historic missteps and recoveries, reinforcing core ideas from new angles.
Contextualizing present and past methods
Spiral method for retention
Origins: Why LDI was needed
Before the 2000s, most institutional planning prioritized asset growth. The resulting mismatches between assets and liabilities led to periodic funding crises. LDI emerged as a corrective, emphasizing the need to revisit assumptions as obligations changed.
2000s: Regulatory wake-up calls
The early 2000s saw global regulatory shifts. Pension funds in Singapore and abroad began to prioritize liability matching, integrating actuarial models to revisit risk and funding adequacy. This period cemented LDI’s relevance.
2010s-2020s: Adapting to volatility
Recent years have brought new market disruptions, further validating the spiral approach—revisiting liabilities and assets as a continuous, evidence-based process.
2020s and Beyond: Future LDI directions
Looking ahead, ongoing changes in regulation and actuarial practice will continue to shape how LDI is applied in Singapore. Our methodology is designed to adapt as the evidence base evolves.