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Podcast: What does the term ‘cashflow-driven investing’ actually mean?
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 landscape?
Lisa Purdy, LGIM’s Head of DB Solutions Distribution, explains all.
You can listen on: Apple podcasts Audioboom and Spotify
For professional investors only. Capital at risk.