SFE are delighted to partner with CMS and Hymans Robertson on an event focused on pensions, policy and patient capital.
In this session we will explore the tensions between policy intentions and existing legislative and fiduciary duties applying to pensions. With increasing focus on the “S” and “G” of ESG there has been increased political interest and policy proposals to explore how pension fund assets might be utilised for long term projects.
The Mansion House proposals and the more recent Autumn statement have made it clear that member value is to be a key driver in future decision making on pension investments with the additional benefit that it will drive investment in the UK economy at the same time. There is political caution against pension fund investment decisions being driven by an excessive focus on lower costs rather than long-term value for savers, so this is a timely discussion of the opportunities for and challenges of patient capital.
Patient capital seeks to meet sustainability objectives, recognising that many asset owners are able to invest with a long-term mindset. Potential investments include projects such as renewable energy and it's associated infrastructure, forestry and other natural capital assets. These in turn address social issues such as job creation and community relations. Investment products offering access to such assets must continue to evolve to meet changing needs of investors.
Pension schemes are a key target, along with other institutional investors, and this session will explore the opportunities and challenges for these asset owners. The use of illiquid investments could be useful in meeting scheme, provider, and member ESG aspirations as well as providing diversification benefits but there are potential issues to consider too. There are tensions between the roles and responsibilities of stakeholders and developments in this area need to include sufficient safeguards. We will consider a range of issues for use of patient capital in trust and contract-based schemes and the role of the various stakeholders in providing access to these developing investment products and strategies.
Be sure to book your ticket for this event below: