15 September 2021
Why ESG is essential for cash flow matching success
With defined benefit (DB) pension schemes maturing and many turning cash flow negative, cash flow matching portfolios are increasingly important. Fiduciary managers must lead in ensuring environmental, social and governance (ESG) factors play an increasingly integrated role in the process and portfolios of cash flow matching strategies. Integrating ESG is a vital evolution, not only in delivering on trustees’ regulatory obligations but in ensuring that portfolios are more resilient and value additive. Here, we set out why integrating ESG matters, and what we consider when identifying managers to help us provide bespoke cash flow matching ESG to pension schemes.
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