ABOUT THIS STRATEGY
The strategy's focus is on broadly meeting our clients' cash-flow needs. This is done by structuring a portfolio of credit assets to redeem at regular intervals, in-step with anticipated pension fund cash-flow needs. By including some higher-yielding assets, the strategy aims to balance our clients' needs of generating sufficient cash-flow without giving up too much expected return. The amortising nature of the strategy means that schemes do not need to commit as large a proportion of their assets as they would to a strategy focused entirely on generating higher levels of income.
- Mitigate sequencing risk. Disinvesting growth assets in volatile market conditions can be detrimental to scheme recovery plans, locking in funding level deterioration.
- Tailored portfolios (pooled or segregated) built form the bottom up based on realistic return expectations and defined cash-flow requirements.
- The need for cash-flow can be balanced with the desire to enhance yield.
- Proven expertise in building multi sector fixed income portfolios for clients.
- Advantages of a broad opportunity set from different asset classes used within the portfolio.