Recent market turmoil has brought a renewed focus on liquid cashflow solutions to UK defined benefits plans.

With higher interest rate volatility and growing competition for transfer of liabilities, how can schemes position themselves towards the endgame given their healthy funding positions?

In this paper, we share why we believe credit investing is worth revisiting, particularly a global approach.

We also discuss the importance of credit selection for unlocking reliable cashflow generation and return enhancement while addressing sustainable goals, within global corporate bonds.

Figure 2b: Growing institutional ownership, including insurance companies

Figure 2b: Ownership data is annual from 2000 to 2017 for insurance companies, pension funds and trusts. Source: ONS

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Risk factors you should consider before investing:

• This material is not intended to provide investment advice or be considered a personal recommendation.
• The value of investments and income from them can go down as well as up and you may lose some or all of your initial investment.
• Past results are not a guide to future results.
• If the currency in which you invest strengthens against the currency in which the underlying investments of the fund are made, the value of your investment will decrease. Currency hedging seeks to limit this, but there is no guarantee that hedging will be totally successful.
• Depending on the strategy, risks may be associated with investing in fixed income, emerging markets and/or high-yield securities; emerging markets are volatile and may suffer from liquidity problems.