Investment perspectives - Winter 2020
Investment areas of focus for 2020
27 Feb 2020
In this article from our winter issue of Investment Perspectives, we outline some common themes that will require focus within an investment strategy context and where investment advice is likely to be required.
All schemes
Without a doubt, the topic that is likely to retain most relevance throughout the year is Responsible Investment. Not just because new regulatory requirements were introduced into Statements of Investment Principles that will also require evidence based material to confirm pension schemes are actually doing what they say they are doing, but also the growing awareness of investor responsibility on climate change. Due to the importance, we have introduced a regular article on Responsible Investment in each edition over the coming year.
In another regulatory theme, the CMA objectives that are now in force will require pension schemes to monitor and measure the success of the investment advice given. We are still awaiting The Pensions Regulator’s (TPR) findings from their consultation on this subject. Regardless, pension schemes should keep their long-term objectives at the heart of their priorities and continuously reflect on whether decisions made are suitably aligned with intended outcomes.
The future of RPI will involve a consultation that is now expected to close six weeks after its release in March 2020 with conclusions expected to be publicised prior to the summer parliamentary recess in July 2020. We are already liaising with a range of LDI managers to obtain their views, assist clients who wish to participate in the consultation and prepare to respond to the consultation ourselves when it is released.
The discontinuation of LIBOR will occur at the end of 2021 and over the last two years we have been helping clients take preparatory action within their LDI portfolios. Over the next year, we will continue to work with clients to understand the impact, particularly on product benchmarks that reference LIBOR.
Click here to read the full article, including specific themes for DB, LGPS and DC schemes.
This article is from our winter issue of Investment Perspectives.
0 comments on this post