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Cashflow Driven Investing (CDI) is a highly intuitive approach: using high-quality credit assets to match the cashflows of your pension scheme’s liabilities; avoiding the need to sell assets at inopportune times, removing concerns regarding mark-to-market movements and reducing re-investment risk. What’s not to love? Well, a few things actually.
In this paper we explain some of the benefits and limitations of CDI, as well as some of the detail around implementation, to help you decide whether it’s the right option for your scheme.