March is cherry blossom season in my part of London and the local streets fill with branches of delicate white and pink flowers. I was touched to find some trees also carrying blue and yellow ribbons in support of Ukraine. It’s hard to believe it’s been a month since I woke to the news of the Russian invasion. We are now at the end of the first quarter and I feel my video posts have become more relaxed over that time. This month I discussed how to build a credible sustainable investment manager. My latest feature for Professional Pensions was published which talked about whether collective defined contribution schemes are the right solution for the at- retirement conundrum or if there are too many inter-generational risks. I also posted another video which asked what sustainable managers can learn from smart phone providers. I’m feeling excited about my next networking event in early May. Get in touch if you would like to know more!
Are you a credible sustainable investment manager?
For any trend, there leaders and followers. The followers of the sustainable investing think this is something they can do from the outside in – it’s as easy as adding a few products to their existing range. But this will not build trust with your clients. To achieve that, you need to construct a sustainable business from the inside out. Take a look at the video to learn more. I have produced a handy infographic which details the steps an asset manager needs to take to become credible sustainable investment manager.
Avoiding generational unfairness with CDC
The publication of a new framework for CDC makes it possible for these schemes to become a reality. This article discusses how this is of interest because we need to solve the at-retirement conundrum. Freedom and choice mean members now have individual responsibility for their investment and longevity risk once they reach retirement and these schemes could reduce these hazards. But there are those in the industry who feel nervous about whether scheme members will understand income levels are targets rather than guarantees. There are also concerns about whether CDC will be generationally fair. Devising a similar system for demographic cohorts might be a better solution.
What can sustainable asset managers learn from smart phone providers?
Often when I suggest to sustainable asset managers to use simple and robust language when explaining what they do, they look surprised and ask how they can do this when what they do is so complex. While this reaction is understandable – managing someone’s financial future comes with a lot of responsibility – straightforward language doesn’t mean you are mis-selling. Watch my video to learn how smart phone providers sell a complex product with simple language and what asset managers could learn. I feel straightforward language builds trust with clients. Do you agree?
Latest networking event
I’m feeling particularly excited about my latest networking event – it’s got great speakers and a fascinating topic. It’ll take place in early May so please get in touch if you would like to attend.