Insight

Pension Fund De-risking – taking a holistic approach to income generation

22 July 2022
Andrew Gordon
Andrew Gordon
Managing Director, Fund Management
Mary Cahani
Mary Cahani
Head of Defined Contribution (DC) Clients
Pension Fund De-risking – taking a holistic approach to income generation

In this video, we explore how alternative income strategies can accelerate the de-risking journey for Defined Benefit pension schemes.

Bringing together Invesco experts covering Private Credit, Real Estate and Buy and Maintain Credit, we discuss how alternative income can provide a diversified source of return to meet schemes’ funding objectives and a predictability of income to enable cashflow matching.

Focusing on a holistic approach to income generation, we discuss the value of combining alternative strategies such as Real Estate Debt with Buy and Maintain Credit to provide flexibility and certainty of cashflows, and consider the challenges schemes face including inflation and ESG.

Key topics covered in this video:

 2:12         De-risking and the opportunities for Defined Benefit pension schemes

 3:17         How a more holistic approach to income generation may differ from a cashflow driven investment strategy

 4:58        How can Real Estate Debt help schemes achieve the income and yield needed, especially in the context of rising rates and inflation

 7:19          How are a range of alternative income asset classes useful for delivering return

 8:54         Where does Buy and Maintain Credit fit into a holistic approach to income generation

 11:16         How do you build a resilient portfolio, for example including Real Estate Debt

 13:36       Buy and Maintain Credit: what are the considerations in terms of cashflow matching

 16:00      How do you implement an allocation to private markets strategies

 16:53       Summary: What support can Invesco offer Defined Benefit schemes to help solve the broader challenges they face

Podcasts in the Define Benefit Pensions series

Alternatives platform

Alongside Invesco’s in-house capabilities, our multi-manager alternatives platform offers a single point of access to high-quality alternative strategies. These come from select, market-leading boutique managers in private equity, private credit, infrastructure and real assets.

Find out more

  • The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.

     

    Alternative investment products may involve a higher degree of risk, may engage in leveraging and other speculative investment practices  that may increase the risk of investment loss, can be highly illiquid, may not be required to provide periodic pricing or valuation information to investors, may involve complex tax structures and delays in distributing important tax information, are not subject to the same regulatory requirements as mutual portfolios, often charge higher fees which may offset any trading profits, and in many cases the underlying investments are not transparent and are known only to the investment manager.  There is often no secondary market for private equity interests, and none is expected to develop.  There may be restrictions on transferring interests in such investments.

  • Where individuals or the business have expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice.

     

    This video is marketing material and is not intended as a recommendation to invest in any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication. The information provided is for illustrative purposes only, it should not be relied upon as recommendations to buy or sell securities.

     

    EMEA 2305734/072022