The information in this site is intended for consultants, institutional investors and trustees only.

The information contained in these pages must not be used or relied upon by private investors. We recommend that you read our 'Terms & Conditions' before browsing the site.

Please click submit to confirm that you are a consultant, institutional investor or trustee and wish to continue.

Audience

Cashflow matching solutions - Spotlight page

M&G has a long heritage of cashflow investing with its origins in running £56bn of a primarily investment grade, cashflow-matched annuity fund, which we have managed on behalf of our group since 1999. This annuity investing approach alongside our extensive experience of running outcome-orientated portfolios across both public and private assets for UK pension funds since 2009, supported by in-depth resources in these areas, allows us to provide bespoke cashflow solutions.

The value of investments will fluctuate, which will cause prices to fall as well as rise and investors may not get back the original amount they invested.

How do cashflow solutions work in practice? This case study shares our recent work with a large UK defined benefit pension scheme to transition from significant swap exposure to a cashflow solution based on physical assets.

Download the case study

cashflow-solutions

 

In this paper, we look at why building your own annuity book involves being flexible and asset agnostic, what we have used as building blocks for cashflow matching solutions and the process of putting together such portfolios.

Download the paper

CDI-thumb

 

How is COVID-19 impacting CDI strategies? M&G participated in a roundtable discussion, hosted by Portfolio Institutional, to give our insights into how CDI is withstanding the COVID-19 test.

Listen to the audio recording

CDI spotlight covid thumbnail
Top

Building your own annuity book

We build tailor-made cashflow portfolios from a broad range of reliable, cashflow generating assets. These building blocks encompass forms of financing which are public, private, fixed, floating, index linked, secured, unsecured, junior, senior, asset-backed and so on. The common theme is a contracted cashflow.

 

MG_2988_CDI_3DDiagram1_v11_RESIZE

Top

Assets in focus: the building blocks

We asked some of our fund managers to explain how their asset class can benefit a cashflow matching porfolio and help pension funds meet their funding requirements.

The starting blocks- INVESTMENT GRADE PUBLIC DEBT

When building a portfolio of fixed income assets to provide specific cashflows for pensioners, the starting place for the portfolio or the core of the portfolio should be investment grade public bonds.

Claire Bews looks at the liquidity of this asset class and its diversification potential.

 
 
Top
LEVERAGED LOANS

Fiona Hagdrup talks about the benefits of higher running income from leveraged loans and how protections can be built in for the lender


INFRASTRUCTURE DEBT

John Mayhew discusses how infrastructure debt can deliver steady, long-dated, inflation-linked cashflows, often from governmental entities.


SOCIAL HOUSING

Will Nicoll explains how social housing can benefit both investors and wider society.




LONG LEASE REAL ESTATE

Holly Johnston explains how sale and lease back can provide long term and predictable cashflows as well as combining expertise from fixed income and real estate teams.





INCOME STRIPS

Peter Manners-Smith discusses how the income strips offer exposure to secure, index-linked cashflows, with no exposure to real estate at lease expiry.





Contact

For further information about our cashflow matching solutions, please contact:

John Atkin
+44 (0)203 977 3718
john.atkin@mandg.co.uk

Georgina Clarke
+44 (0)203 977 3147
georgina.clarke@mandg.co.uk

Top

For institutional investors only. Not for onward distribution to any other type of client. No other persons should rely on the information contained on this website.