In explaining how a pension fund should transition to a liability-driven investment strategy, Duane Richelieu, managing director of Northern Trust's global investment solutions team, writes in "Implementing LDI in Pension Plans," January 2007 https://www.ntrs.com/pointofview/07_Jan/ implementing-ldi-pension-plans.html:
"1. Analyze and characterize the liabilities;
2. Quantify the relationship between the assets and liabilities;
3. Develop and implement appropriate investment strategies;
4. Monitor the account, rebalance the assets and liabilities mix and tweak the investment strategy as necessary." Describe each of the above elements.