Tuesday 4th July
19:00
Dinner: BBQ in the Walled Garden
Wednesday 5th July
08:30 – 09:00
Coffee & Registration
Morning Devil’s Advocate Panel
Justin Bridges, Head of Pensions, Shropshire County Pension Fund
Dafydd Edwards, Independent Adviser
Vanessa Jacka, Portfolio Manager, Brunel Pension Partnership
09:00 – 09:05
Chair’s Opening Remarks
Chair
John Harrison
Adviser
Border to Coast Pensions Partnership
09:05 – 09:25
Presentation: We’re not in Kansas anymore…
Not only will the year ahead for investors look very different from the recent past but, more significantly, the next decade is unlikely to see a return to the relatively becalmed landscape of the past 15 years. The dislocations we are currently observing are not “transitory”, nor merely just “persistent”… they are structural in nature. Such profound change brings risks but also, for investors willing to adapt their portfolio allocations to the new norm, an array of attractive investment opportunities.
Presenter
James Ashley
Managing Director
Goldman Sachs
09:25 – 10:05
Panel: Fixed Income Returns
Interest rates and bond yields have risen significantly over the last year. The Panel will discuss the current bond market environment, the implications for future returns and the role of bonds in LGPS investment strategies.
Panellists
Gerard Fitzpatrick
Managing Director, Global Head of Fixed Income Portfolio Management
Russell Investments
Quentin Fitzsimmons
Portfolio Manager
T. Rowe Price
Tim Mpofu
Head of Pensions
Haringey Pension Fund
Nemashe Sivayogan
Head of Treasury and Pensions
London Borough of Merton
10:05 – 10:25
Presentation: The Impact of Debt
Following recent valuations, Local Government Pension Schemes continue to seek yield against a backdrop of macroeconomic uncertainty, at a time where making a sustainable impact is also driving investment decision making. In this session Ewan Macaulay will outline why private debt markets in real assets currently offer compelling relative-value opportunities. He will also share how private debt investments can work to deliver climate impact and social impact through renewable infrastructure, climate transition loans or social and affordable housing.
Presenter
Ewan Macaulay
Head of Private Debt Investment Specialists
Aviva Investors
10:25 – 10:45
Presentation: Infrastructure – Global Opportunities
By the end of the decade, annual investment in global clean energy infrastructure will need to triple to $4.6 trillion, in order to meet 2050 net zero targets. (Source: International Energy Agency, 26 October 2022). This unprecedented acceleration in climate infrastructure investing creates an unparalleled opportunity for UK LGPS, who can benefit from capital growth and inflation linked income derived from infrastructure investments rooted in positive ESG impact. From Battery Storage Systems in Wiltshire, and midlands-manufactured Synchronous Compensators installed in Scotland, to offshore wind in South Korea, and distributed residential solar in New Zealand, during this session, our speaker will bring to life the global clean energy infrastructure opportunity, highlighting how UK LGPS investment is facilitating a global solution to a global problem.
Presenter
Keith Mangan
Managing Director, Head of EMEA
BlackRock
10:45 – 11:10
Coffee Break
11:10 – 11:30
Presentation: Investment solutions that support a nature-positive economy
Increasingly biodiversity loss, along with climate change are seen as the twin economic, environmental and social emergencies. However, investment markets are still grappling with how biodiversity loss can be integrated into investment portfolios and policies. In fact, there are 300x more funds that focus on improving climate outcomes compared to biodiversity. David Thomas, Portfolio Manager of the RobecoSAM Biodiversity Equities strategy will speak about what “Biodiversity Investing” means today, explain the transition sectors which is integral to addressing biodiversity decline and the potential solutions which will hopefully lead to a “nature-positive economy”.
Presenter
David Thomas
Portfolio Manager
Robeco
11:30 – 12:10
Panel: The role of emerging markets in LGPS strategy
Emerging markets have always been a rollercoaster for UK investors, with both market and currency volatility. The Panel will discuss current equity valuations, the outlook for different emerging markets and the most effective ways to implement an emerging market investment strategy.
Panellists
Martha Brindle
Director, Equity
bfinance
Paul Nevin
Assistant Director Investment Strategy
West Midlands Pension Fund
Krishan Selva
Director, Client Portfolio Manager
Columbia Threadneedle Investments
Lucy Tusa
Partner
Mercer
12:10 – 12:30
Presentation: Investing in Renewables on the path to net zero
As we move towards a net zero future, our speaker will look at the role renewable sources of energy will and must play to ensure we stand the best chance of reaching our carbon reduction targets.
Presenter
Matt Ridley
Partner, Private Markets
Schroders Greencoat
12:30 – 12:40
Devil’s Advocate Summaries
12:40 – 13:45
Lunch
Afternoon Devil’s Advocate Panel
Eric Lambert, Independent Adviser
Doug McMurdo, Chair, Bedfordshire Pension Fund
13:45 – 14:20
Roundtable Discussion: Should the LGPS’s role be to promote economic growth and if so, how?
The Government’s levelling up initiative has prompted a debate about the role of the LGPS in promoting UK economic growth. The LGPS is a substantial pool of capital which has for decades invested with a bias to growth assets globally. The question is whether the LGPS should do more in the UK to support new technologies, small businesses and local infrastructure. The roundtable discussion will consider how this could be achieved while meeting the sector’s fiduciary duties.
Facilitator
Jeremy Hughes
Senior Pensions Secretary
Local Government Pension Scheme Advisory Board
14:20 – 14:40
Fireside Chat: Latest developments in sustainable investing – a practioner’s perspective
As a fiduciary of client capital, a deep understanding of the evolving sustainable investing landscape is critical to success in delivering the client mandate. This session will look at how Fidelity has evolved its investment beliefs and established an influence framework for environmental and societal issues including climate change, good governance, social disparity and natural capital. It will share how Fidelity integrates sustainability through active engagement and a range of proprietary tools that provide a rigorous and robust decision-making approach. The session also touches on how the ESG regulatory agenda continues to evolve and Fidelity’s role at the forefront of addressing ongoing changes in this area.
Presenter
Jenn-Hui Tan
Global Head of Stewardship & Sustainable Investing
Fidelity International
14:40 – 15:00
Presentation: Implementing Net Zero
Net-zero initiatives have been a critical development over the last few years, bringing all corners of our industry together to support tackling the challenge of climate change. When these initiatives launched, the spirit was one of ‘getting the ball rolling’, as we could not afford to stand still and wait until we had worked out all the details. Investment managers and asset owners have taken a variety of different routes and many are now approaching their first internal targets for 2025. The industry faces many challenges, including methodologies used, the focus on real-world change, managing diverging client expectations, and staying committed to an area in which policy and governments are still catching up. This session will help to address the challenges of implementing net-zero strategies, and will outline how Newton is supporting LGPS clients on what lies ahead.
Presenter
Therese Niklasson
Global Head of Sustainable Investment
Newton Investment Management
15:00 – 15:40
Panel: Managing Market Volatility
LGPS funds need to embrace investment risk if our pension promises are to be affordable. But risk means volatility. The Panel will discuss ways in which market volatility can be managed.
Panellists
Iain Campbell
Senior Investment Consultant
Hymans Robertson
Matt Hopson
Deputy Director of Finance – Corporate
London Borough of Islington
Jeremy Richardson
Senior Portfolio Manager
RBC BlueBay Asset Management
Chris Rule
CEO
LPP and LPPI
15:40 – 16:05
Coffee Break
16:05 – 16:45
Panel: Infrastructure – Local Opportunities
The definition of “levelling up” from an investment perspective remains unclear, but it is likely to encompass local infrastructure investments. The Panel will consider what this might cover, potential return requirements and the implications for effective governance.
Panellists
William Bourne
Independent Adviser
George Graham
Director
South Yorkshire Pensions Authority
Peter Manners-Smith
Director, Real Estate Income
M&G Investments
Robert Wall
Managing Director, Sustainable Private Infrastructure
Lazard
16:45 – 17:05
Interview: Equities: Value Investing
Having performed well as economies recovered post-pandemic, “value” equities have faced headwinds in recent months. Is this a temporary issue or will the value style struggle in a higher interest rate environment?
Presenter
David Herro
Chief Investment Officer – International Equities
Harris Associates L.P.
17:05 – 17:15
Devil’s Advocate Summaries
17:15 – 17:20
Chair’s Closing Remarks
Chair
John Harrison
Adviser
Border to Coast Pensions Partnership
17:20 – 19:00
Drinks Reception
19:00
Dinner with After Dinner Speaker
Jo Salter
First female fighter jet pilot and Director of Global Transformative Leadership at PwC
Click here to find out more.
Thursday 6th July
08:30 – 09:00
Coffee
Morning Devil’s Advocate Panel
Joana Marfoh, Head of Treasury and Pensions, Islington Council Pension Fund
Michael O’Higgins, Former Chair of LPP and Former Chair of TPR
09:00 – 09:20
Presentation: A closer look at the financial and environmental benefits of natural capital investments (specifically timberland and farmland) for LGPS funds
Over the past year, impacts related to the COVID-19 pandemic and the war in Ukraine have produced major supply chain disruptions contributing to market volatility, historically high inflation rates and aggressive monetary policies. Traditional asset classes, such as public equities and fixed income, have been heavily impacted by inflation-induced volatility, falling by 15% and 10% year-over-year, respectively. Over the same period, timberland and farmland indexes were up 12% and 10%, respectively,1 highlighting the importance of diversified portfolios to preserve investment value. Beyond these portfolio-level benefits, natural capital investments can generate quantifiable climate benefits and contribute positively to global sustainability goals.
Presenter
Skye Macpherson
Head of Portfolio Management
Nuveen
09:20 – 10:00
Panel: Private Debt
Higher interest rates mean that potential returns from both listed bonds and private debt are higher. The Panel will consider the range of returns currently available, the liquidity and other risks associated with private debt and its role in LGPS strategies.
Panellists
Adriana Becerra Cid
Sustainability Manager Private Assets
Lombard Odier
Anthony Fletcher
Independent Adviser
Toni Vainio
Partner
Pantheon
Tricia Ward
Director, Private Markets
Redington
10:00 – 10:20
Presentation: Growing affordable housing supply: Investing long-term capital for society’s benefit
Access to a safe, warm and affordable home is a fundamental building block of all societies. By European standards the UK housing market is unaffordable, resulting in an elevated need for subsidised housing to support those who cannot afford to purchase or rent on the open market. Building and operating affordable housing has historically been the responsibility of councils and not for profits. However, since 2010 legislation has allowed profit-distributing organisations to directly own and operate affordable housing allowing investors to access to index-linked cashflows whilst delivering significant social benefits. Ben Denton will explain the market fundamentals, risks, returns and prospects for pension fund investment into the sector.
Presenter
Ben Denton
Chief Executive
Legal & General Affordable Homes
10:20 – 10:40
Presentation: Opportunities in Commercial Real Estate – Data Centers
The commercial real estate market has undergone a significant transformation in recent years. While secular trends such as ecommerce penetration and hybrid working models have created uncertainty in segments of the market and has made investors question the future of the asset class, PIMCO believes there are a number of emerging opportunities within the sector for UK LGPS. Strong digital technology trends for example (increasing internet adoption, cloud migration and the growth of AI) have driven significant demand for digital infrastructure, making data centers one of the fastest growing markets in Europe and PIMCO’s highest conviction sectors. Join PIMCO to hear about the investment opportunities and risks in European data centers.
Presenter
Kirill Zavodov
Executive Vice President, Portfolio Manager
PIMCO
10:40 – 11:10
Coffee Break
11:10 – 11:30
Presentation: Navigating the coming Hemingway recession
Economist Jamie Dannhauser gives a macroeconomic overview in which he discusses the fragility of today’s financial system, as highlighted by episodes such as the banking crises in March. He also covers the likelihood of recession and the inability of central banks to remedy the inflation problem without significant cost for investors.
Presenter
Jamie Dannhauser
Economist
Ruffer LLP
11:30 – 12:10
Roundtable Discussion: Measuring success
The LGPS has changed a lot over the last five years both as a result of asset pooling and from improved funding levels. The roundtable is an opportunity to share views about what we are trying to achieve and how we will know whether we are doing a good job. The question of this session is – what are the key performance indicators relevant for funds and pools over the next five years?
LGPS administering authorities are not only managing a portfolio of nearly £400 billion assets but also taking in contributions from about 2 million active members and paying out benefits to 2 million pensioners. The SAB Code of Transparency was designed to shine a light on, and help manage, the £1.8 billion spent each year on investment costs – is it working? Scheme members and tax payers ought to be able to scrutinise whether administering authorities are delivering value for money – how can they do so?
LGPS pools were intended to professionalise the investment function, reduce costs and to allow LGPS funds access to asset classes that would otherwise be out of their reach. They are also increasingly seen as a mechanism by which LGPS can “punch its weight” in stewardship and delivering ESG goals. What is the scorecard for pooling and how do we assess whether/how this is working?
Facilitator
Becky Clough
Board Support and Policy Officer
Local Government Pension Scheme Advisory Board
12:10 – 12:50
Panel: Consolidation
Asset consolidation is not unique to the LGPS – it is a global trend in investment markets. With the LGPS pools nearing completion of their capability development, should there be a further phase of asset consolidation? If so, how could it be done? The Panel will highlight the drivers of consolidation and discuss whether further consolidation is desirable for the LGPS.
Panellists
Chris Hitchen
Chair
Border to Coast Pensions Partnership
Bridget Uku
Investment Manager
Ealing Pension Fund
Mike Weston
Former CEO of LGPS Central
12:50 – 13:00
Devil’s Advocate Summaries
13:00 – 13:05
Chair’s Closing Remarks
Chair
John Harrison
Adviser
Border to Coast Pensions Partnership
13:05
Lunch and Close
