Indexing in Liability-Driven Investment Strategies

In the context of fixed income portfolio management, a liability-driven investment strategy focuses on aligning the investment portfolio with an investor's liabilities. One common approach to implementing this strategy is through indexing.

Discuss the concept of indexing within a liability-driven investment strategy. Include the benefits and drawbacks of utilizing an indexed portfolio to manage liabilities, and explain how this can affect the overall risk and return profile of the investment strategy. Support your discussion with illustrative examples.