Cashflow-Driven Investing outlook – Q4 2021

UK Defined Benefit scheme funding improved for the third consecutive quarter, by 0.6% to 106.4% on average.1
With funding ratios remaining at their highest since 2008, we expect more de-risking activity to protect recent gains, as schemes progress towards their long-term objective.
However, inflation remains a worry - the wide dispersion of inflation views leads us to expect higher than usual volatility of interest rate and inflation pricing, increasing the value of hedging within portfolios.
In our latest outlook we discuss:
- The de-risking outlook for Defined Benefit pension plans
- Our current views on global market conditions and key factors influencing a CDI (Cashflow-Driven Investing) strategy
- The outlook for key fixed income, private markets and alternative strategies