L&G Talks Asset Management

How can pension trustees prepare for new requirements on the environmental, social and governance (ESG) factors? New guidelines from the Department of Work and Pensions (DWP) make it clear that it is not sufficient to focus on a narrow definition of the bottom line in order to meet schemes’ core objective: providing retirement benefits for members. Instead, trustees must also consider the financia...

  Investors have embraced the world of index-tracking products on the back of comparatively low headline costs and the broad market exposures on offer. But the rise of alternatively constructed indexes, thematic ETFs and the client demand for more inclusion of responsible investment principles into their index funds has prompted a dramatic change in the investment landscape. Simon joins us this we...

It’s fair to say that growing up in South Africa helped shape Anton Eser into the Chief Investment Officer he is today. Having lived “in one of the emerging markets” through a tumultuous period in that country’s history, he learned that the perspectives on notions of risk and change are very different when compared to other parts of the world. A chance meeting between him, his younger sister and N...

Property: The wellbeing investment opportunity We’ve all been in meeting rooms where the air has become so stuffy that there’s very little chance of good ideas emerging. Similarly, sitting nearer to a window has been shown to improve employees’ health, energy and performance. We might not often connect real asset investment to health and wellbeing but major trends are bringing it into the mainstre...

  The green elephant in the room: there’s a lot of conversation in the market about investing responsibly – including integrating environmental, social and governance (ESG) factors – but there’s also a lot of confusion. For many investors it’s often seen in quite binary terms, everything or nothing! Part of the fact is that it’s not easy to pin down a specific definition. From ethical to impact to...

Behind every role, there’s a story. We’re exploring the lives and careers of people across LGIM to understand more about what brought them to asset management, the changes they expect to see in the investment industry and – if they had to pick anything else – what their dream job would be. If you’ve listened to any of our Defined Contribution focused episodes, you will have heard Simon’s voice. Th...

  The need for cybersecurity permeates all levels of society with high-profile data breaches wiping hundreds of millions of dollars off of company valuations. The threat of highly damaging attacks means that security spending will likely increase further to record levels. Aanand joins us to discuss the ever-increasing demand for cybersecurity services and the thematic opportunity for investors in...

Getting the mix of assets in a portfolio belonging to someone coming up to retirement is so important. There are a lot of different factors to take into account when you’re looking at a de-risking ‘journey’ including diversification as well an individual’s particular aversion to loss. With many people not even considering their retirement date until even a few years, a thoughtfully designed propos...

Following the release of an eye-opening UN report on climate, the time is ripe for investors to act with their own money. This week we’re checking in with Iancu and Yasmine to talk about how we’ve reached the end of the road for coal, the development of exciting new carbon-capture and renewable technologies, and how being an active owner can help accelerate the shift to the low-carbon economy. Yas...

Analogy #1: If you laid out in $1 bills the amount that has been bought by central banks over the last ten years, you would end up covering an area around five times the size of Wales. Ahead of the European Central Bank and Federal Reserve meetings happening later this month, we invited Chris and Ben to the podcast to discuss central banks’ reversal of their quantitative easing programmes – a proc...

After a difficult few months, it's only natural for the old debates between investment styles and longevity of economic cycles to resurface. Let’s not forget, we've had a decade-long run of ‘growth’ stocks outperforming value-driven stocks, while volatile periods inevitably lead the market to question whether growth investing has had its day in the sun. We invited Gavin and Matthew to explain the...

In 2019, the key question is how tightening financial conditions will affect heavily indebted borrowers – and whether this raises the risk of recession. In his annual outlook, Chief Investment Officer Anton Eser discusses where the next vulnerabilities might emerge, what monetary and fiscal policy support might look like, and what all this means for investors. Anton Eser, Chief Investment Officer...

Why are some cities thriving creators of jobs and growth? Is a local university a driver of innovation or does it risk turning the area into a ‘student’ town? How important is making the commuter trains run on time in an age of flexible working? A strong city relies on many factors to drive employment growth but when successful, we believe this is associated with resilient and growing property inc...

US interest rates rises and the return of volatility have made investing in emerging market bonds seem like a dangerous place these past twelve months. However, larger shifts like a rising middle class and favourable demographics look set to fuel the growth of this asset class over the long term, argues Head of Emerging Market Debt, Uday Patnaik. Uday ‘Woody’ Patnaik, Head of Emerging Market Debt...

Many of us receive no pensions guidance at all – we open our regular paper statement and often take no action for our future retirement. With defined contribution pensions likely to form future generations’ main source of retirement income, member engagement is more important than ever. This week we discuss how disrupting the old model with new technologies like video statements can get people inv...

The dynamic duo are back to talk more about decumulation. Justin Onuekwusi and Paul Measures continue to break their ‘no talking about Manchester United’ rule while diving deep into retirement withdrawal strategies. Following their previous episode which asked if it was time to retire the 4% rule, Justin explains the different factors that can effect an investor’s level of drawdown and why natural...

Is the future of the UK a nation of homeowners, long-term renters or somewhere in between? Returning guests Hetal Mehta and Eleanor Jukes join us this week to talk about one of the UK’s favourite topics of conversation – property. The government’s recent commitments to providing a range of solutions to the housing imbalance has created a number of investment opportunities for institutional capital...

The business case for gender diversity is clear – diverse companies are able to benefit from harnessing all available talent, potentially improving their share price as a result. Clare Payn talks to us about why it’s important to celebrate the progress businesses have made so far while recognising the areas where there’s still work to be done. Listen to find out the most cringe-worthy excuses she...

With interest rate hikes and ‘quantitative tightening’, the end of the economic cycle draws nearer every day. Tightening central bank policies and increased volatility have fuelled fears of the next economic contraction. This week, we ask how investors can manage low-risk portfolios and mitigate the ‘nightmare scenario’ of falling equities and fixed income returns? Justin Onuekwusi, Head of Retail...

In the next economic downturn, central banks will likely have to reach further into their unconventional playbook. The days of simply cutting interest rates in periods of economic and market stress are behind us. In the short term, markets have an unhealthy obsession with parsing every word and phrase of central bankers for clues to their immediate policy intentions. But which policymakers have th...

Retirement and pensions can often seem a long way off for many people – we all still need and often worry about money for everyday living so how can we help individuals see the value in saving for the future? With 40% of people indicating that they do not have good control of their money or manage it well (Money Advice Service) it can often feel saving more into a pension is difficult hurdle to ov...

The way people are spending their free time is changing. Successful leisure properties are destination locations – a place to socialise, network and be entertained. From escape rooms and trampolines, to the classic cinemas and bowling alleys, discretionary spending at leisure properties is increasing as people seek more ‘experience’ activities. This week, we talk about how leisure businesses are r...

The falls over the past two years in high yield and emerging market debt (‘alternative credit’) credit spreads, along with indications of late-cycle behaviour in the US, has made some investors nervous about allocating to these areas. But should pension schemes reconsider? We discuss attractive qualities of alternative credit and how fund manager Martin Reeves has his whole family invested in high...

How well an investment team works is determined by more than a documented investment process. In this episode, the Asset Allocation team take a candid look at how they respond to the challenges of working to reach a ‘team’ view, using three key themes as working examples: operating in a new political paradigm, investing in technology and how sometimes you just need a dollar. To read more about the...

Retiring the 4% rule: Decumulation demystified The 4% drawdown rule forms the basis of many advisers’ decumulation propositions. Where there was once complexity – and expensive portfolio analysis – the rule promises simplicity; set, forget, and spend (if required). However, our research shows that the results can often vary significantly depending on when you decide to start saving for your retire...