CDI

Some 85% of pension investors expect schemes to increase allocations over the next three years

Cashflow-driven investing (CDI) is about meeting the outcome that matters most to pension schemes - being able to pay out liabilities as they fall due.

After a decade of de-risking, there is still more to do, particularly for those schemes late to the hedging party, writes James Phillips.

As more schemes look at building a CDI strategy amid the economic crisis, Sebastien Proffit looks at what to consider.

The Pensions Regulator (TPR) and Pension Protection Fund (PPF) will deliver keynote addresses at Professional Pensions’ Risk and Scheme Funding Forum next week.

The Schroders Retirement Benefits Scheme (SRBS) is allocating £800m of its defined benefit (DB) assets to its in-house cashflow driven investing (CDI) building blocks.

Return-driven investment strategies can deliver a better match for scheme-specific return targets via a more diversified and liquid portfolio, argues Gavin Orpin.

Given the modest size of the UK IG corporate bond market, we believe a globally-focused and actively managed IG corporate portfolio and a careful portfolio construction can help UK DB schemes.

The average pension scheme allocation to cashflow-driven investment (CDI) assets doubled over the 18 months to June this year, according to RiskFirst.

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.