Cashflow-driven Investment
How to build cashflow strategies amid Covid-19
As more schemes look at building a CDI strategy amid the economic crisis, Sebastien Proffit looks at what to consider.
Webinar: Managing cashflows in challenging times
Professional Pensions' latest webinar - held in conjuction with Aon, BlackRock and Schroders - looks at the specific cashflow challenges schemes have been facing during the disruption and market volatility caused by Covid-19; explore how different schemes...
Hear from TPR and PPF at PP's Risk & Scheme Funding Forum - register now
The Pensions Regulator (TPR) and Pension Protection Fund (PPF) will deliver keynote addresses at Professional Pensions’ Risk and Scheme Funding Forum next week.
Is it time to ditch CDI for RDI?
Return-driven investment strategies can deliver a better match for scheme-specific return targets via a more diversified and liquid portfolio, argues Gavin Orpin.
ESG integration should find its natural home in CDI strategies
Portfolios constructed using a cashflow-driven approach can prove to be a good fit for meeting ESG regulatory requirements and mitigating risk, says David Curtis.
DB schemes continue move out of equities in favour of illiquids
Over half of all UK defined benefit (DB) schemes have reduced their investment in equities over the last two years while diversifying into alternative growth assets, according to Aon.
The challenge of sterling credit shortages in CDI portfolios
Sterling credit assets are in relatively short supply. Sebastien Proffit looks how this can affect scheme CDI strategies.
What's the catch with CDI?
Kerrin Rosenberg says while the rise of CDI is positive, understanding the risk and return aspect is a great challenge
Three-quarters of schemes will be using CDI by next year, finds AXA IM
The majority of schemes are now using cashflow-driven investment (CDI) strategies as closures drive up the number of pensioners, AXA Investment Managers (AXA IM) research finds.
The changing landscape of fiduciary management
Partner Insight: Russell Investments' David Rae and Paul Wharton discuss how fiduciary management has changed in response to a shifting market context and what we might expect to see going forward
Striving for a more certain world
At the recent Risk Reduction Forum, hosted by Professional Pensions, Schroders' Hannah Simons discussed how cashflow driven investment can provide greater confidence of achieving a strategic goal
Credit where credit is due
Cashflow driven investment strategies can provide a greater certainty of outcome, while also enhancing a scheme's risk management framework, says Schroders' head of fiduciary management Hannah Simons
Average DB scheme able to meet 93% of benefits, says LGIM
A typical defined benefit (DB) scheme was able to meet 92.9% of its accrued pension rights as of 30 September, according to Legal & General Investment Management (LGIM).
Investment considerations from TPR's annual funding statement
Abhishek Srivastav explains why he believes the regulator's annual funding statement strengthens the case for a cash-flow driven investment approach
Schemes should look beyond sterling credit
Sorca Kelly-Scholte says the $5.1trn US investment grade corporate bond market offers greater opportunities to diversify.
Defining the two types of cashflow-driven investing
LGIM's Graham Moles and John Roe look at the difference between cashflow matching and cashflow aware investing and discuss the role equities can play as part of the CDI spectrum.
What types of assets can be considered for cashflow-driven investing?
Sorca Kelly-Scholte looks at the assets that can form the foundation of cashflow-driven investment strategies.
How cash-flow driven investment can help deliver the pensions promise
Abhishek Srivastav and James Waters assess how maturing schemes can manage cashflows and mitigate investment risk
Catch-22 and the rise of cash-driven investing
Schemes are becoming cashflow negative at a time they can ill-afford any drag on investment returns. Sorca Kelly-Scholte and Maria Ryan look at solutions to this Catch-22
Schemes should invest in global equity and multi-asset for cash flow needs
Capital Group and Newton Investment Management have teamed up to raise awareness of how negative cash flows among defined benefit (DB) schemes should be tackled differently.
90% of all DB benefits could be paid off with cashflow-driven strategy
It should be possible to pay 85%-90% of the estimated £3.3trn of promised benefits if schemes have the right risk management and investment strategies in place, according to Redington.
The new pension scheme challenge - managing cashflow efficiently
Jonathan Crowther and Sebastien Proffit say schemes need to prepare their portfolios to deal with increased cashflow requirements.
Schemes need to plan for being cashflow negative
Sorca Kelly-Scholte says schemes need to start looking at making changes to investment strategies as they become cashflow negative.
Hymans Robertson: More than half of FTSE 350 schemes cashflow negative
The number of FTSE 350 defined benefit (DB) plans which are cashflow negative has increased from 50% to 57% over the course of the year according to Hymans Robertson.
