Institutional investors are taking a more differentiated and strategic approach to private credit allocations – and they have a broad menu of sub-sectors and approaches to select from that each can help meet different risk-return objectives. Specialized segments including asset-based private credit and subscription li e lending are also at the forefront for investors. For all, prudent execution and experience in navigating different market environments is paramount.

Collective investment trusts offer DC plan sponsors several advantages over traditional mutual funds, which has led an overwhelming majority of plans including the CIT structure in their investment options. CITs and mutual funds differ in key features, implementation and use cases, making them a viable option for most DC plan menus.

With corporate pension plans enjoying high funded status and even surpluses, their derisking paths have widened significantly. Some are leveraging annuity buy-ins strategically to prepare for an eventual buy-out or to manage market volatility. Others are pursuing more calibrated liability-driven investing strategies that support their asset gains and can even grow their surpluses. The lead sponsors of P&I’s Pension Derisking conference share current insights for pension plans.