Many pension schemes face challenges in meeting obligations amid difficult market conditions, therefore liquidity planning is an important consideration as schemes mature.
We have a long heritage of fixed income investing which forms the core of our CDI approach, providing:
a low risk/low governance approach
an investment process that benefits from both quantitative and fundamental insights
a rigorous ESG screening process
Our innovative CDI approach
We have developed CDI solutions that allow investors to reliably manage their cashflow obligations using a liquid, diversified and transparent approach, regardless of their scheme size.
Our CDI investment approach is built upon four pillars:
We are a global manager with significant scale
Index heritage — focus on cost minimization and efficient implementation
Global relationships — access to new issuance
Trading resources — across the globe
Our CDI strategies use high-quality corporate bonds only
Simple to understand and implement
Transparent asset prices for monitoring purposes
Liquid assets to add flexibility
We intentionally avoid illiquid assets which offer higher yields but are more complex to manage and can potentially hinder near-term buyout plans.
A quantitative-based approach with fundamental oversight optimised to match cashflows. We select from a global bond universe
Reduces concertation risk
Provides for higher-capacity solution
A solution based on our ESG experience
We screen for UN Global Compact violators, controversial weapons and severe ESG controversies
We can adapt to client-specific requirements for segregated portfolios
Our solution can be applied in either segregated or pooled fund structures, as below:
For larger portfolios, clients can set their own cashflow requirements, as well as bespoke portfolio constraints
Set your cashflow requirements and tolerances
Customise your own constraints:
Maximum allocation to foreign currency bonds
Custom exclusion list or ESG screens
Our CDI funds can be combined to match a desired liability profile and also blended with LDI to deliver a comprehensive solution
To learn more about our Cashflow Driven Investing approach please contact us
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These investments may have difficulty in liquidating an investment position without taking a significant discount from current market value, which can be a significant problem with certain lightly traded securities.
Equity securities may fluctuate in value and can decline significantly in response to the activities of individual companies and general market and economic conditions.
The views expressed in this material are the views of the Liability Driven Investing team through the period ended 28 February 2021 and are subject to change based on market and other conditions. This document contains certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected.
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