Helping to meet Defined Benefit pensions’ promises
At AXA IM we are an active, long-term, global, multi-asset investor. We work with our clients today to provide the solutions they need to help build a better tomorrow for their investments, while creating a positive change for the world in which we all live.
Over two decades we have gained a clear understanding of pension fund needs as they evolve and proven expertise in helping achieve financial goals sustainably.
In the UK, where defined benefit (DB) pension schemes continue to mature each year, it is not surprising that we are continuing to see increasing interest in our cashflow driven investing (CDI) strategies. Our London-based team now manage £14bn of assets for more than 30 clients.
At the core of our cashflow solutions is our long-term Buy and Maintain credit approach, with £348bn of client assets managed globally. A fundamentals-based, investment grade credit strategy with built-in Environmental, Social and Governance (ESG) factor analysis, it aims to maximise the security of clients’ future cashflows by building resilient credit portfolios to deliver:
• Capital preservation – avoiding defaults and impairments
• Predictability – delivery of cashflows over the long term
• Credit returns – maximising the premium over gilts
Recognising that each scheme is unique – size, funding level, covenant strength, endgame strategy – we partner with clients and their advisers to develop solutions aligned to each scheme’s position and aims, while retaining the flexibility to adapt to market conditions and any future changes in scheme objectives.
Investments involve risks, including the loss of capital.
12 November 2020 08:45
mallowstreet University Digital Roundtable: 2020 - A Volatile Year for UK Pension Schemes, How Have Cashflow Strategies Fared and What Lessons Have Been Learned?
With pension schemes continuing to mature with each passing year, trustee boards have increasingly turned their efforts towards the long-term aims of delivering promised benefits and implementing successful end game strategies. But with the impact of COVID-19 and significant market changes, trustees have been forced to prioritise shorter-term risks and investment considerations.
In light of the market turmoil, what can we learn from those schemes which in recent years had already set out to re-position their investment strategies to focus on sustainable cashflow delivery and the de-risking of their overall investment strategies? How have such schemes navigated this period of volatility and uncertainty? And what are the opportunities and learning points for those that are considering embarking on this journey? These are just some of the questions we will be exploring in this session.
This event is available exclusively for pension fund decision makers and their advisers and is eligible for CPD accreditation.
Rob is a Portfolio Manager in AXA IM's London Buy and Maintain Credit team, and focuses on the design and ongoing management of cashflow solutions.
He has 10 years’ experience working with UK pension schemes on their investment strategies, firstly as an investment consultant and then within asset management.
Robert joined AXA IM in April 2013 as a Solutions Manager, working closely with pension schemes and their advisors to design derivative-led investment strategies such as hedging and overlay solutions, before moving into the Buy and Maintain team following the development and growth in Cashflow Driven Investment (CDI) strategies.
Prior to AXA IM, Rob worked at KPMG Investment Advisory as an Investment Consultant, advising trustees and sponsors of UK defined benefit pension plans on investment strategy, with a focus on asset liability modelling and liability driven investing.
Rob holds a degree in mathematics from the University of Cambridge and is a qualified actuary.
Rachel is responsible for leading AXA IM's work with UK institutional investors including corporates, pension schemes and professional trustees in supporting them to meet their objectives.
Rachel joined AXA IM from Mercer where she worked as a Sales Director and a Senior Investment Consultant. Rachel’s previous roles include Director of EMEA Client Services for the Cash Business at State Street Global Advisors and Director of Global Accounts at BlueBay Asset Management.
Rachel holds an MSc in Actuarial Science from Cass University and bachelor’s degree in Mathematics from the University of Sheffield.