297: What does the term ‘cashflow-driven investing’ actually mean?

L&G Talks Asset Management · Nov 30, 2023 · 12m

Although many schemes have seen their funding positions improve steadily in recent years and endgame is on the horizon, all defined benefit (DB) schemes still need to pay pensions as they fall due. In this light there’s continued focus on cashflow-driven investing (CDI) and also ‘barbell’ strategies.

But what do these terms really mean? What’s the right balance between cashflow-driven and ‘barbell’ investment approaches? And should schemes’ strategies differ given low-dependency or buyout objectives? Also, are there any other topics DB schemes may wish to consider in today’s investment…