After an intense summer of heat and post-pandemic partying, I feel ready for the cool days and nights of autumn. Over August the pace of social activity slowed but the pace of publications did not. My first opinion piece was published for Professional Pensions arguing pension schemes must urge fossil fuel companies to spend more of their surplus cash on the green transition. I also had my first article in St James Place’s Investor Magazine which examined the outlook for longevity. And there were two articles published for MandateWire looking at the impact of current macroeconomic environment on the UK’s closed defined benefit schemes. I also published a video giving three reasons why it’s helpful for an asset manager to communicate their message more effectively, even though this industry is used to speaking to fellow experts. I will be hosting my next networking event on 21st September so get in touch if you would like to attend. Do your clients think you are greenwasher? Take this quiz to find out.
Schemes must urge fossil fuel firms to spend more surplus cash on green transition
My first opinion piece for Professional Pensions argues pension schemes must urge fossil fuel firms to spend more on surplus cash on the green transition rather than allowing companies to use windfall profits on share buybacks. Members of Climate Action 100+ asked BP at their AGM if they intend to spend more of their cash surplus on transition but there are no indications the company intends to accelerate its investment. Asset owners and managers must keep up the pressure or risk being seen as greenwashers.
I’m going to live to be how old?
Is life expectancy increasing in the UK? That’s the issue my first article for St. James’s Place’s The Investor magazine examines. I explain how Covid and NHS waiting lists have made predicting longevity more uncertain. Not only has it become more challenging to forecast the longevity for different demographic cohorts but it remains extremely difficult for individuals to work how long they will live. The article also covers the steps people should take to make sure they have enough cash in retirement.
Rising rates pose a challenge for LDI portfolios
This is the first in three articles for MandateWire which take a look at how current market conditions have affected closed defined benefit pensions. This piece looks at the impact of the fall in the value of LDI portfolios and how this has necessitated DB schemes to post collateral. It also examines how higher inflation levels can reduces a scheme’s need for cost price hedging. This was a truly mind-melting article to write. To misquote Richard Feynman, during most of the interviews I felt very much like every time I thought I understood the current state of LDI, I realised I didn’t understand the current state of LDI!
Consultants urge schemes to revisit their buyout plans in the rising rate environment
The second in the series examines the impact of the current macroeconomic environment on buyouts. It looks at how rising interest rates and the subsequent fall in liability valuations and deficits have made buyouts more affordable for a larger number of closed define benefit pension funds. It explains how the rise in interest rates in recent months has led to an improvement in funding levels as most schemes are not fully hedged. And it also discusses pricing in the bulk annuity market has improved partly because credit spreads have increased as well as the cost of the longevity risk falling.
Three reasons why a sustainable investment manager should communicate more effectively
Change is hard. Especially when you operate in an industry which is a closed shop and everyone speaks the same language. This video gives three reasons why communicating more effectively can be helpful for sustainable investment managers. Firstly, people buy from people and it’s hard to build an emotional connection using facts and figures. Secondly, using jargon limits the size of your audience. Thirdly, good communication helps you to influence the industry’s agenda.
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 events
There will be not one but two networking events to look forward to later this year! The first will take place on Wednesday, 21st September and the second on Wednesday, 9th November. If you would like to know more, please get in touch.
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