Pensions & benefits

CDC investment consulting

Collective Defined Contribution (CDC) schemes require a fundamentally different approach to investment strategy.

Unlike traditional pension arrangements built around individual pots or short-term funding measures, CDC delivers an evolving pension that changes through time. That means investment success must be judged through member outcomes — including pension levels, inflation resilience and downside pension risk.

CDC is fundamentally a long-horizon investment design problem, requiring investment, actuarial and economic thinking to work together.

Designing investment strategies for evolving pensions

Around 70% of expected CDC member outcomes are driven by investment returns. That means portfolio design is fundamental to how pensions evolve through time.

We help clients design CDC investment strategies built around long-term member outcomes rather than an over-focus on short-term portfolio metrics.

Our work combines investment strategy, actuarial modelling and economic scenario analysis to help clients understand how different portfolios are expected to affect pension levels, downside outcomes, inflation resilience and the stability of pensions over time.

How we can help you with CDC investment:

Strategy design and member outcomes

We help clients design investment strategies that balance expected pension levels, downside risk and the stability of outcomes through time. Our modelling focuses on how different strategies may affect replacement ratios, pension adjustments and member outcomes across different generations and economic environments.

Economic scenario analysis and risk frameworks

CDC portfolios must remain resilient across very different market conditions. We use economic scenario modelling and regime analysis to assess how portfolios behave through inflation shocks, market drawdowns and changing growth environments, helping clients understand sequencing risk and long-term sustainability.

Portfolio construction and implementation

We advise on portfolio construction, manager selection and implementation, helping clients build portfolios designed to support long-term real pensions. Our approach considers not only expected returns, but also diversification, inflation resilience, costs and how risks emerge through time.

Responsible investment and ESG

With CDC schemes having longer investment time horizons than other forms of pension, long-term systemic risks take on a greater importance. We help clients navigate the complex evolving ecosystem of risks, including the impacts of climate change, nature impacts and societal shifts.

Ongoing governance and monitoring

Any good CDC investment strategy is not static. We support trustees and sponsors with ongoing monitoring, strategy review and governance frameworks, helping schemes assess whether portfolios continue to deliver outcomes consistent with member expectations and scheme objectives.