Monday 1st July, 2024
Devil’s Advocates – Afternoon
Vanessa Churchman, Councillor, Isle of Wight
Anthony Fletcher, Independent Adviser
Matt Hopson, Deputy Director of Finance, London Borough of Islington
11:00 – 12:00
Registration
12:00 – 12:10
Chair’s Opening Remarks
Chair
John Harrison
Adviser
Border to Coast Pensions Partnership
12:10 – 12:30
Presentation: Time to take a fresh look at fixed income
Our speaker will share their perspectives on the current state of global fixed income markets. Learn about the key factors that will influence future investment returns and the implications for LGPS investments.
Presenter
Amanda Stitt
Portfolio Specialist Fixed Income
T. Rowe Price
12:30 – 13:10
Panel: Global equities – a five-year forecast
Global equities have delivered consistently high long-term investment returns for many years despite the vagaries of economic and political cycles. One of the major drivers in recent years has been the US market in general and the technology sector in particular. Will high global equity market returns continue or does the current dominance of a few large US technology companies imply a more volatile period ahead?
Moderator
John Harrison
Forum Chair
Panellists
Will Ballard
Head of Equities
Border to Coast Pensions Partnership
Louise Kernohan
Head of Global Opportunities
Newton Investment Management
Peter Wallach
Director of Pensions
Merseyside Pension Fund
Ben Yeoh
Senior Portfolio Manager, RBC Global Equity
RBC BlueBay Asset Management
13:10 – 14:00
Lunch
14:00 – 14:40
Roundtable Discussion: Fund mergers
There has been a lot of debate recently about potential further consolidation within LGPS assets, both in terms of pools and fund mergers. Is further consolidation desirable? If so how should it be done?
Facilitator
Bola Tobun
Interim Pension Fund Accountancy Manager (Projects)
London Borough of Southwark
14:40 – 15:00
Presentation: Fixed income in a positively correlated world
While the standard assumption underlying portfolio construction is the negative correlation of bonds and equities, recently this correlation has been positive. What are the implications for investors? What role can global fixed income play in meeting investment goals in this environment?
Presenter
Benoit Anne
Managing Director, Investment Solutions Group
MFS Investment Management
15:00 – 15:20
Presentation: Exploring the opportunities within Emerging Markets and the role they have to play in our future
Emerging markets are not homogenous; they are highly diverse countries at different stages of development and are constantly evolving. In this session, we will look at why the opportunity today is greater than ever, taking into account the geopolitical and economic shift from West to East, the growth in technology and AI, and how these markets can support the climate transition, all while providing attractive returns and growth prospects.
Presenter
Karnail Sangha
Portfolio Manager
Robeco
15:20 – 15:40
Interview: Private debt and direct lending
Private Credit is not an asset class that has gone unnoticed by LGPS – allocations continue to increase to direct lending and private credit, highlighting the benefits of income, illiquidity premium, and low volatility. During the interview, we will explore where future opportunity for investors lies. Will growth continue in today’s market or are we approaching the end of the current “golden age”?
Interviewer
John Harrison
Forum Chair
Interviewee
Audie Apple
Senior Vice President, Alternatives
Fidelity International
15:40 – 16:00
Coffee
16:00 – 16:40
Panel: Private equity opportunities
Private equity is playing an increasing role both in major economies and in LGPS allocations. What does this mean for potential future opportunities? What role does private equity play in achieving our wider objectives for sustainability and promoting economic growth?
Moderator
John Harrison
Forum Chair
Panellists
William Bourne
Independent Adviser
Christopher Hopkins
Managing Director, Venture Capital
Legal & General Capital
Bridget Uku
Investment Manager
Ealing Pension Fund
Lindee Wong
Director of Climate and Biodiversity
Tikehau Capital
16:40 – 17:00
Presentation: Climate & Credit – solving the conflicts without compromise?
Over a long period, corporate bond investors have shown a predilection for convenient bond characteristics over fundamentals. Recent developments have made this dynamic even more pervasive, providing clear opportunities to build better credit portfolios. In an echo of history, market-based solutions for asset managers to demonstrate their net zero credentials may be leading to inappropriate outcomes in the face of one of the most existential credit risks of all. Against this backdrop, our speaker, will discuss whether a less compromised solution, that enhances investor insights and reporting whilst preserving portfolio integrity, is achievable?
Presenter
Martin Foden
Head of Sterling Credit Research
Royal London Asset Management
17:00 – 17:20
Interview: Finding opportunities in global equities
In a wide-ranging discussion, our speaker will explore where fundamental value investors are finding the biggest opportunities in a market that is dealing with disinflation, elections and the AI revolution. They will also discuss the important role that active managers play in engaging with companies held by LGPS investors.
Interviewer
John Harrison
Forum Chair
Interviewee
David Herro
Partner
Harris Associates
17:20 – 17:30
Devil’s Advocate Summaries
17:30 – 17:35
Chair’s Closing Remarks
Chair
John Harrison
Adviser
Border to Coast Pensions Partnership
17:35
Private key collection and Check-in
19:00
Drinks and Dinner in the Walled Garden
Tuesday 2nd July, 2024
Devil’s Advocates – Morning
Adrian Brown, Independent Adviser
Philip Hebson, Independent Adviser
Vanessa Jacka, Independent Adviser
08:30 – 09:00
Registration
09:00 – 09:05
Chair’s Opening Remarks
Chair
John Harrison
Adviser
Border to Coast Pensions Partnership
09:05 – 09:25
Presentation: Macro Jiu Jitsu
Politics, policy and macro fundamentals are at a point of inflection. The certainties of the recent past are giving way to a more fluid investment landscape in which inflation is likely to be stickier, interest rates higher, and risks greater than has been seen for a generation or more. This session look at how best to navigate the geopolitical & economic challenges that lie ahead.
Presenter
James Ashley
Head of International Strategic Advisory Solutions EMEA & Asia
Goldman Sachs
09:25 – 10:05
Panel: Managing inflation
UK inflation is one of the main drivers of LGPS liabilities. What is the outlook for inflation in the coming years and how can we manage this potential risk more effectively?
Moderator
John Harrison
Forum Chair
Panellists
Iain Campbell
Head of LGPS Investment
Hymans Robertson
Andrien Meyers
Head of Pensions Investments
Royal Borough of Kingston and London Borough of Sutton
David Rae
Head of Strategic Client Solutions
Russell Investments
Nemashe Sivayogan
Head of Treasury and Pensions
London Borough of Merton
10:05 – 10:25
Presentation: Diversification in a world of higher inflation
Post-pandemic, higher inflation has made the building blocks of most LGPS portfolios increasingly correlated. The result – diversification is harder to come by. The fact that these returns have been to the upside since 2022 has helped mask the damage this shift in correlations can cause. It also provides an opportunity to address it. This presentation will highlight those assets that have a proven track record of diversifying in regimes such as that we have now entered. Spoiler: they don’t currently form part of the conventional LGPS portfolio.
Presenter
Jasmine Yeo
Fund Manager
Ruffer LLP
10:25 – 11:05
Roundtable Discussion: How should the LGPS promote sustainable economic growth?
The Government’s levelling up initiative has prompted a debate about how the LGPS should promote sustainable UK economic growth. The LGPS is a substantial pool of capital which has for decades invested in growth assets. The question is how the LGPS can 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
Robert Wall
Head of Sustainable Private Infrastructure
Lazard Asset Management
11:05 – 11:30
Coffee
11:30 – 11:50
Presentation: Private equity and venture capital for the LGPS
Accelerating consolidation of LGPS assets with new targets to double their existing investment in private equity to 10% in a move aimed at unlocking £25 billion by 2030. What does this mean for the LGPS, what are the risks and what type of companies is the government asking the LGPS to invest into?
Presenter
Harry Raikes
Investment Director
Schroders Capital
11:50 – 12:10
Presentation: Delivering social impact through traditional corporate bond investing
Fixed income remains a core asset class for LGPS pension funds (with data from DG Publishing indicating £66 billion dedicated to this asset class). With corporate bond yields rising back to pre-global financial crisis levels, they also now offer a return in addition to diversifying growth portfolios for pension funds. Less is known about the fact that corporate bonds, via use of proceeds bonds and even general purpose bonds, also offer LGPS funds the option of making a targeted investment to help deliver positive impact in areas such as affordable housing, health, education, energy transition and climate solutions. Our speaker outlines how this positive impact could be achieved without compromising return, liquidity, asset allocation targets or fiduciary duty.
Presenter
Letty Byatt
Social Impact Analyst
Columbia Threadneedle Investments
12:10 – 12:30
Presentation: Investing in nature
How can nature be properly valued – both to ensure it is better preserved but also achieve strong return potential for investors? Many natural capital strategies focus on selling carbon credits or investing in timber, however this session will look at how different approaches to natural capital can target strong return potential, nature benefits and decarbonisation.
Presenter
Morten Rossé
Head of Nature and Climate
Lombard Odier Investment Managers
12:30 – 13:10
Panel: Natural Capital investment – an LGPS perspective
There is an increasing awareness of the critical role nature plays in supporting economic activity. This panel will explore the range of natural capital investment strategies providing scalable real-world examples, the relationship between natural capital and investors’ ESG commitments and discuss asset owners’ key criteria when selecting an asset manager in this space.
Moderator
John Harrison
Forum Chair
Panellists
Mark Hall
Senior Programme Manager: Place-Based Impact Investing
Impact Investing Institute
Celine Grace Legaspi
Vice President
Redington
Sarah Megahed
Director of Nature, Nuveen Natural Based Solution
Nuveen
Alex Younger
Head of Funding and Investment
Norfolk County Council
13:10 – 13:20
Devil’s Advocate Summaries
13:20 – 14:20
Lunch
Devil’s Advocates – Afternoon
Dafydd Edwards, Independent Adviser
Denise Le Gal, Chair, Brunel Pension Partnership
Sawan Shah, Head of Finance, London Borough of Brent
14:20 – 14:40
Presentation: Data centers: empowering a data driven world
Digital transformation, AI and cloud computing are driving huge data centre growth globally. The specialised infrastructure, immense importance of renewable power sources and long-term tenant relationships are unique features compared to other real estate sectors. So how can LGPS capitalise on the stable, predictable income, diversification benefits and long-term capital appreciation of this specialist sector? We’ll explore.
Presenter
Casey Miller
Managing Director, Portfolio Management
Principal Asset Management
14:40 – 15:20
Panel: Net zero
The LGPS has already made considerable progress on the path to net zero. Over the next few years, more robust and consistent data on emissions will become available as we approach the interim target date of 2030. Are we still on track, or will further progress be more difficult to achieve?
Moderator
John Harrison
Forum Chair
Panellists
Laura Colliss
Pension Fund Manager
North East Scotland Pension Fund
Paul Guilliotti
Director of Financial Services
Wandsworth Pension Fund
Alex Owen
Senior Portfolio Analyst
Brunel Pension Partnership
Sonia Rocher
Managing Director
BlackRock Portfolio Management Group
15:20 – 15:40
Presentation: Real estate income strips
Real estate income strip investing has existed for a number of years, offering investors inflation-linked cashflows alongside ESG benefits such as social impact from developments. Following the recent valuation adjustment for interest rates, is now a good time to invest into the sector?
Presenter
Lee McDowell
Fund Manager
M&G Investments
15:40 – 16:10
Coffee
16:10 – 16:30
Presentation: European data centres
The data centre sector is experiencing one of the strongest secular growth stories, driven by increasing internet connectivity, the adoption of cloud services, and the development of AI. In Europe, the increasing customer appetite for low-latency data delivery and digital sovereignty regulations present an opportunity for the LGPS to invest in the development of data centre capacity within under-supplied European data centre markets. This session outlines examines the data centre landscape and looks at the opportunities and risks presented by thedevelopment of efficient, less carbon intense build-to-suit data centres for hyperscalers across Europe.
Presenter
Kirill Zavodov
Executive Vice President, Portfolio Manager
PIMCO
16:30 – 17:10
Panel: LGPS in 2030
The LGPS has changed significantly in the last six years, both structurally through the implementation of pooling, and in its aggregate funding position, which is now in surplus. This panel looks forward to the potential changes we may see in the next six years. Will the Government set more rigorous targets for pooling or the allocation of investment assets? Is further consolidation inevitable, either at the fund or pool level? How might investment strategies change as pensions in payment continue to increase? What new investment ideas might be on the horizon? Can we be confident that we will have achieved the 2030 milestones for our net zero ambitions?
Moderator
Jeff Houston
Independent Adviser
Panellists
Becky Clough
Board Support and Policy Officer
Local Government Pension Scheme Advisory Board
Jill Davys
Head of LGPS
Redington
Doug McMurdo
Chair
Bedfordshire Pension Fund
Phil Triggs
Director
Westminster City Council
17:10 – 17:20
Devil’s Advocate Summaries
17:20 – 17:25
Chair’s Closing Remarks
Chair
John Harrison
Adviser
Border to Coast Pensions Partnership
17:25 – 19:00
Drinks Reception
19:00
Dinner with After Dinner Speaker
Speaker
Jon Culshaw
Impressionist
Jon is regarded as the best impressionist in the UK with a catalogue of over 350 voices. His credits include Spitting Image, Dead Ringers, The Secret World, Newzoids, The Sky At Night and The Now Show.
