At this year’s European Pensions Awards, BNP Paribas Asset Management’s Cashflow Driven Investing strategy scooped up the Alternatives Investment Manager of the Year award. The September/October 2019 edition of European Pensions details why BNP Paribas Asset Management’s ability to offer bespoke lending solutions to institutional investors led to a win in this competitive category. Julien Halfon also explains how Cashflow Driven Investing has evolved to meet the specific needs of pension funds.
With UK Defined Benefit pension schemes turning increasingly cashflow negative and traditional Liability Driven Investment (LDI) portfolios offering lower returns, schemes are turning to cashflow driven investing (CDI) to better match cashflows while generating higher risk-adjusted returns. For Small and Medium-sized Defined Benefit (DB) and Defined Contribution (DC) schemes, where CDI isn’t necessarily appropriate, they too can benefit from alternative credit through Diversified Private Credit (DPC) portfolios.
2018 saw buy-in/buy-out volumes reach a record £24.2billion¹. With pension funding levels having improved since the financial crisis, mature corporate defined benefit (DB) schemes are increasingly seeking to transfer these risks from their balance sheet to the insurance sector.
BNP Paribas Asset Management's Julien Halfon joins a cash-flow driven investing roundtable to discuss how CDI should be used by pension schemes and outlines the case for using CDI strategies.
Institutional investors in the UK and globally are facing a perfect storm, and it is one that is threatening their returns and with it their ability to make right on future liabilities.
18 April 2018
BNP Paribas Asset Management announces that it has appointed Julien Halfon as Head of Pensions Solutions within its Multi Asset & Quantitative solutions investments group.
19 February 2019
BNP Paribas Asset Management’s Philip Dawes, head of UK sales, and Julien Halfon, head of pension solutions, explain why trustees should be making CDI part of their investment strategy.
Investment funds targeting Commercial Real Estate (CRE) Debt are experiencing strong interest from investors. The origins of CRE Debt fund growth trace back to the global financial crisis of 2008-9.