Birds of a feather discussion session led by asset manager and LGPS moderators on the hot topics
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Informal gatherings of like-minded individuals who wish to discuss a certain topic without a pre-planned agenda. Delegates get a choice of discussion topic (chosen on the day) including the following:
B: Good governance and political integrity?
The good governance project has been progressing well, with the impact of COVID and the need to use virtual facilities what are the risks and opportunities for good governance? Has the role of the pension board suffered or thrived over the last two years? Does the current revelations in politics of “do as we say not as we do” creep into the management and governance of LGPS funds or is it all irrelevant noise?
C: Our people are our strength but are we too lean?
Before the pandemic there were worries that the LGPS was suffering from being under-resourced and we were struggling to afford the right people with the right skills. Has this improved or worsened throughout the pandemic? Is the ability of the pools to pay more creating conflict over resources? If this is a problem is it a problem specific, or more for the LGPS or a public sector phenomenon in general?
D: Booming economy will we ever hear those words again?
Just when we thought the economy was recovering it has been hit by more uncertainty – what are the continued doldrums doing to our investment strategies? Do the world’s sustainability needs mean we should think differently about what we invest in? Is there an increased urgency to think about diversification into assets that are uncorrelated with traditional assets – what should these investments be?
E: Embracing diversity – is it happening?
In the investment world we have seen leadership become more truly and naturally diverse. Examples include 30% club getting more women on boards and The Diversity Project with its many workstreams to address the wide range of diversity issues including race and ethnicity, mental health, gender equality, disability, LGBT+, age etc. Have these actions made a true difference in addressing inclusion and equality in the pensions and investment world or is it still an upward battle and if so why is that the case?
F: Stewardship: moving from statistics to outcomes
Shifting the mindset from reporting statistics to focusing on outcomes under the 2020 Stewardship Code, how do we as asset managers and asset owners get the best out of our portfolio holdings? Key points for evidencing the outcomes to both member funds and asset owners.
G. The net zero economy and the levelling-up agenda, are the two linked?
Are renewables and other comparable assets likely to be located in areas defined by the Government as being in Category 1 and 2 from a levelling-up perspective? i.e. where are the jobs needed? LGPS have to adhere to their fiduciary responsibility first and foremost so does the LGPS Advisory Board referring to ‘local’ being the UK assist in driving the levelling-up agenda? Given the burgeoning net zero economy and the levelling-up agenda, it is possible to achieve both at the same time and add diversified value to your fund?
H. Inflation in the spotlight UK inflation has soared to its highest rate in 30 years.
With 2 years of pandemic-related disruption now coupled with rising commodity prices as a result of the situation in Ukraine, the spotlight on inflation – and consequential heightened uncertainty – is set to continue. What tools are at the LGPS’ disposal to tackle inflation? What can the LGPS do to protect their portfolios from the risks posed by inflation, without doing so at the cost of returns for their members?
I. Changing occupier demands and demographics: what does this mean for future real estate demand?
Over the coming decades, the demands on real estate will change. Ageing populations, reduced working age population (15-64), higher use of e-commerce and more flexible working solutions will all have an impact. What does this mean for real estate allocations?
J. ESG and greenwashing - seeing past the hype
Sadly, ESG greenwashing has become a buzz word. How to look through an asset manager’s strategy and pitch to detect when there is real ESG or simply a marketing tool? Looking for participants to share insights and their own experiences.
K. Protecting "Scheme Property" from fraud - who owns what and who is responsible?
The devil is in the detail. Who actually owns property in which LGPS funds invest? Who is entitled to deal with it (i.e. vote, allocate, litigate) and who is not? What is being left on the table or unaddressed?