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Four ways to make DB strategies even more resilient
We discuss how schemes can navigate a thorny investment landscape and prepare themselves for buyout.
In light of the unprecedented volatility exhibited by UK markets this year, many defined benefit (DB) schemes are reviewing their investment strategies to ensure they are as resilient as possible in the face of a macro environment that is likely to remain challenging.
In this piece, we outline four key areas we believe to be critical to this objective, which will enable schemes to meet their ultimate goal: paying members’ pensions as they fall due.
1. Lower leverage
2. Diversifying sources of liquidity and returns
3. Accessing assets that can pay pensions
4. Integrated portfolio management