Timing is everything. At the end of September, I had an operation and wrote a Twitter thread about the impact of rising gilt yields on LDI collateral payments from my hospital bed. That social-media post proved prophetic and went viral! A day later and only hours after going back home, I was on LBC talking about the LDI shenanigans.. That social-media post proved prophetic and went viral! A day later and only hours after leaving hospital, I was on LBC talking about the LDI shenanigans. My latest feature for PLSA Viewpoint magazine, looking at the impact of LDI collateral payments on pension scheme, was also published this month. I was lucky to recover rapidly so I could sprint back to writing a trilogy of blog posts explaining why close private sector defined benefit schemes use LDI, what went wrong and if this was the death of LDI. I was on LBC a second time talking about Hunt walking back Truss’ tax cuts and on the BBC World Service to discuss what Rishi Sunak would do. And I also started my first news shifts for Professional Pensions. What a month!
Fixed income: challenge or opportunity?
When my editor, Maggie Williams, asked me to write about fixed income for the PLSA Viewpoint’s autumn magazine, I suggested we wrote about LDI. I had already written pieces for MandateWire looking at the impact of the year-to-date rises in gilt yields on collateral payments. I included this sentence in my PLSA article: “Even if consultants and trustees have managed to weather the recent storm, they can’t afford to be complacent.” That proved prescient as the article was filed before the LDI crisis! Maggie did a great job making sure the piece was up-to-date while I recovered from the operation – turn to page 13 to read it.
The LDI trilogy
When the crisis broke, I was happy I had written my UK pensions landscape series which included pieces explaining the rise and fall of private sector DB pensions. But recent events meant the series needed updating. The first post explained how these circumstances had paved the way for LDI and how low interest rates had fuelled its popularity, the second explained what went wrong and the third asked if this would be the death of interest-rate hedging.
News shifts
This month I worked two news shifts for Professional Pensions. Next month I’ll be doing the same for Pensions Expert. I enjoyed them greatly and they showed me how, despite the LDI shenanigans, the funding outlook has improved for many defined benefit pensions schemes.
Avoid being labelled a greenwasher
Credibility is vital to building trust with potential and current clients. That’s true for any asset manager but especially important for those who want to be perceived as a best-in-class sustainable investment manager. To avoid being labelled a greenwasher you need a clear purpose and a way to communicate that vision. I created this quiz to identify your current sustainable investment strengths and weaknesses. It helps you to improve so you can stay ahead of your competitors. Curious? Then take the test! It’s only 15 questions and takes only three minutes.
Latest networking event
The next networking event will be held on Tuesday, 8th November and we will discuss if sustainable investors should be allocating assets to fossil fuel companies. Get in touch if you would like to attend!
Comments are closed.