Between February 19, 2020 and March 23, 2020, the S&P 500 crashed almost 35%. The speed and ferocity of the selloff was shocking and caught many market participants unaware. As did the recovery when the S&P 500 surged more than 60% in just over five months. In the economic aftermath, various corporate sectors are facing significant financial hardship and many markets globally are as volatile as they have been in generations. All of which leaves institutional investors across the world with the responsibility of anticipating and planning for what may come next.
Join our panel of experts to hear how they reacted to the volatility of 2020 and what they would do differently in the next market crisis.
– Rich Donnellan – Director, Institutional Investors, Nasdaq Asset Owner Solutions
– Soo Kobberstad - Portfolio Manager, Head of Credit, LPPI
– Tony Yiu - Director of Quantitative Research & Development, Solovis
Moderated by: Brendan Maton: IPE
RecordedFeb 16 202164 mins
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Frans Hofkens, Northern Trust | Vincent Molino, Northern Trust Front Office Solutions | Brendan Maton, IPE
As has been evident from the global financial crisis, successful risk management stands or falls with good governance and the right culture within an organisation. The outcomes of decisions, especially in the long-term, are by definition uncertain and necessitate a careful and balanced decision-making process as the basis for making future-proofed choices.
Join our webcast with Northern Trust in exploring how Operational Due Diligence (ODD) and Operational Risk Management (ORM) play an essential part in a pension fund’s risk management strategy – from the decision making process when appointing a third party asset manager through to continued monitoring of outsourced services.
The webcast will cover:
• An integrated risk management framework and the management of non-financial risk
• Key trends and industry best practices - including insights from the Netherlands where the Pension Act obliges Dutch pension funds to conduct and demonstrate controlled and ethical business operations
• How ORM and ODD help from the outset and throughout a period of outsourcing
Frans Hofkens, Client Executive, Institutional Investor Group, Netherlands, Northern Trust
Vincent Molino, Head of Operational Risk Management Solutions, Northern Trust Front Office Solutions
Michael Toft, Senior Fund Manager of the Octopus Healthcare Fund | Brendan Maton, IPE
The UK healthcare real estate sector is maturing. Occupational demand is growing owing to an ageing population and rising care needs. Meanwhile an undersupply of high-quality purpose-built accommodation persists.
The last decade has seen increasing interest in the UK healthcare market from institutional investors attracted by the scope for long dated income, attractive yields and diversification attributes.
Recent trends among institutions towards impact investing have only served to increase interest. The sector offers investors the opportunity to achieve attractive financial returns while helping solve a key societal challenge – the need for high quality care provision for our elderly population.
Join us at this educational webinar at 12:30pm on Wednesday 9 June to learn about:
– ESG and impact considerations of investing in healthcare real estate
– The market dynamics underpinning healthcare real estate in the UK
– The factors driving increased demand from institutional investors
Octopus Real Estate is part of the Octopus Group, an independent, predominantly UK-focussed investment management platform, with offices in London, New York and Australia and £10 bn AUM (as at 31 Mar 2021) invested across healthcare real estate, property lending, venture capital, mid-market companies and renewable energy. It is majority owned by its founders, approximately 900 employees and their families, and has a 20-year track record. Octopus Group has a distinctive approach to investment management and is certified as a ‘B-Corporation’, which recognises businesses ‘that meet the highest standards of verified social and environmental performance, public transparency, and legal accountability to balance profit and purpose’. Octopus Real Estate is highly experienced in the investment and management of UK healthcare real estate. Its Care Homes Team has been actively investing in Elderly Care Homes for over a decade.
Felix Goltz, PhD, Research Director, Scientific Beta | Victor Liu, CFA, ESG Analyst, Scientific Beta | Brendan Maton, IPE
– How consistent are climate strategies with impact objectives? –
Climate investing strategies seek to reward virtuous companies with increasing capital and provide incentives for management to reduce the climate impact of corporate activities. We analyse whether typical strategies that tilt to stocks with good climate scores or optimise portfolio climate scores are consistent with this impact objective.
We analyse common climate strategies and analyse the holdings of such strategies. How strategies decide on weights at the individual stock level, and how these weights change over time is crucial for driving impact on company management to act for the climate. Therefore, we go beyond analysing portfolio level weighted-average scores that are targeted by such strategies and instead ask how well the strategies incentivise companies to reduce the climate damage they create.
Topics covered include:
– A taxonomy of climate investing strategies
– Identifying the key drivers of capital supply from climate investing to green and brown firms
– Assessing the consistency of signals for incentivizing firms to act on climate
– Creating & Implementing a Forward-Looking Rules-Based Approach to Sustainability & Climate –
Now more than ever, investors are turning to ETFs powered by rules-based indices to build more sustainable portfolios. With climate-related risks posing a potential threat to the long-term strength of many institutional investment portfolios and with the increasing volume of data to help identify key climate-related risks and opportunities, two experts at FlexShares Exchange Traded Funds & Qontigo explain the process of creating indices that effectively incorporate climate metrics and investment factors such as high dividend, quality and low volatility into the index construction process.
Join us for an in-depth partnership discussion on the creation and usage of the recently launched iSTOXX® Northern Trust Climate ESG Indices – that address two challenges that professional investors are dealing with in this low yield, high volatility market.
• Conversation around the partnership between Northern Trust Asset Management and Qontigo that drove the index creation process;
• A closer look at how the indices embed SASB’s Materiality Map® in an effort to identify sustainability issues that are likely to affect the financial condition or operating performance of companies within a given industry;
• Integrating a multi-factor approach including the application of a quality process that consists of three composite categories – Management Efficiency, Profitability & Cash Flow/ Financial Strength in order to identify sustainable dividends.
Linda-Eling Lee, MD, Global Head of ESG Research, MSCI | Oliver Marchand, MD, Global Head of ESG Research & Models, MSCI
An increasing number of companies are announcing decarbonization or ‘net-zero’ commitments with approximately 35% of MSCI ACWI Index constituents having set some type of target as of January 2021. But how realistic are these targets? MSCI’s latest analysis reveals targets that appear to be similar in their headline can turn out to be quite different underneath the hood. This disparity may make it difficult to assess the potential impact targets could have, if achieved, on the environment or on companies’ climate risk profiles.
Join MSCI and IPE as we explore some of the common decarbonization approaches and provide a framework for investors to compare companies’ climate commitments and assess where some of the strengths and weaknesses of a target may lie.
Linda-Eling Lee, Managing Director, Global Head of ESG Research, MSCI
Oliver Marchand, Managing Director, Global Head of ESG Research & Models, MSCI
Che Charteris, CEO, Craigmore | Nick Tapp, Head of Investor Relations, Craigmore | Brendan Maton, IPE
▪ In this webcast Craigmore farming and forestry experts, Che Charteris and Nick Tapp will discuss the economic and environmental benefits of forestry - with New Zealand as a case study.
▪ New Zealand forestry derives revenue from the sale of timber and from carbon credits (NZUs) allocated in recognition of the carbon removed from the atmosphere by a forest as it grows.
▪ New Zealand enjoys a significant competitive advantage in forestry. Growth rates are extremely fast with a 27-year rotation. Faster growth both removes carbon from the atmosphere and delivers mature stands of timber more quickly.
▪ Che Charteris, Craigmore’s CEO, explains that “where cash flows from new forests were previously only received at harvest at around the 27-year mark, the sale of carbon credits allows the Partnership to make distributions to our investors at a much earlier stage. This significant recognition of the importance of forestry as part of addressing climate change has changed the economics of the sector”.
Dr. Ralf Seiz - CEO of Finreon AG, Supervisory Board & Lecturer University of St. Gallen (HSG) | Brendan Maton, IPE
– With Finreon ZeroCarbon® –
The mitigation of climate change and the transition to a CO2-neutral economy is one of the biggest challenges institutional investors face in the coming years, as both the requirement to disclose the carbon footprint and the emergence of new benchmarks (e.g. CTB/PAB) reflect the political and regulatory will to systematically decarbonize investment portfolios.
In this webinar, Dr. Ralf Seiz, founder of Finreon and lecturer at the University of St. Gallen, will present the Finreon ZeroCarbon® methodology to decarbonize efficiently portfolios:
- CO2-neutralisation: The Finreon ZeroCarbon® innovation makes it possible not only to reduce the CO2-emissions of portfolios but to neutralize them completely
- Low risks and costs: Decarbonisation with Finreon ZeroCarbon® allows for a high level of portfolio decarbonization with minimal tracking error impact and costs
- Flexible use: As a “carbon hedge”, Finreon ZeroCarbon® is a highly flexible option to decarbonize any given portfolio structure (active, passive; equity, balanced etc.)
Join us in discussing the following topics:
- Why decarbonize portfolios?
- What options exist to efficiently decarbonize portfolios?
- What is the price of decarbonization?
- What is a carbon hedge?
- How can a carbon hedge be used to efficiently decarbonize portfolios?
- Is it possible to fully decarbonize portfolios today?
Alistair Calvert - CEO and founder, Clarion Partners Europe | Tim Wang - MD, Head of Investment Research, Clarion Partners
The logistics sector has been red-hot, driven by robust occupier demand and strong investor interest. The shift to e-commerce accelerated dramatically during the COVID-19 pandemic as people stayed home and ordered more goods online. Now with the global vaccination rollout, the end of the pandemic is finally in sight. Post-COVID, will people still buy more items online? Will logistics tenants keep taking up more distribution space?
Alistair Calvert, CEO of Clarion Partners Europe, and Tim Wang, Ph.D., Head of Investment Research Clarion Partners, will discuss how Europe is uniquely positioned to benefit from the ongoing supply chain transformation and why logistics will continue to be an attractive property sector to invest in after the pandemic.
Highlights will include:
• Secular e-commerce disruption theme
• Building of “last-mile” logistics infrastructure
• Current leasing and pricing trends
• Tenant preferences for asset quality and location
• Investment opportunities across the Pan-European region
Alistair Calvert - CEO and founder, Clarion Partners Europe
Tim Wang - Managing Director, Head of Investment Research, Clarion Partners
Paul House, ARA Venn | Richard Barkham, CBRE | Andrea Vanni, Areli Real Estate | Brendan Maton, IPE
An engaging session focused on the investment opportunities and threats within the context of European & UK private real estate debt.
Following the economic backdrop as presented by CBRE’s Global Head of Research and Global Chief Economist Richard Barkham PhD, the panel discussion brings both Lender and Borrower perspectives to gain insights to the European & UK Commercial Real Estate debt markets – the discussion will include:
• An introduction to the European & UK CRE debt markets
• Products available to global investors
• The Lender sphere – participants in the market and their approach
• The Borrower’s perspective – competition in the marketplace and selecting the right debt partner
• Views on the UK & differing European countries – what are the best and what are the more challenging markets and why?
• The Lender’s perspective vs. the Borrower’s – other than pricing what are the key loan features that matter and what does this mean to the end investor
• Future market expectations– and how will this impact investment returns
– Paul House, Managing Partner, ARA Venn
– Richard Barkham, Chief Global Economist & Head of Americas Research, CBRE
– Andrea Vanni, Partner, Areli Real Estate
Anca Vasilov, Head of Equities EMEA, Asset Management One International Ltd | Brendan Maton, IPE
Asset Management One is one of Japan’s top asset management firms. With deep roots in our domestic market, we aim to provide clients globally with valuable, actionable insight into the opportunities offered by the Japanese equity market. The focus of this webcast is the fast evolving and dynamic Japan small-mid cap universe. With over 3,000 companies spanning both traditional and new economy sectors, Japan offers a diverse mid-small cap investment landscape. Our presenter will explain why this is a compelling segment of the market that can provide investors with unique investment opportunities for the long term, while also addressing how our firm can help investors navigate the challenges inherent to this section of the market.
Lauren Hochfelder, Brian Niles, Toru Bando & Tony Charles, MSREI | Brendan Maton, IPE
– Around the world in search of the best risk-adjusted returns in commercial real estate –
The global economy is in the early stages of a sharp recovery. Inflation is a new hot topic and interest rates are on the rise. How will these macroeconomic trends impact real estate fundamentals and pricing across different regions? That’s just the cyclical side. Work-from-home, suburbanization, eCommerce, zoom, shifting shopping behaviors. How permanent are these secular shifts that we have witnessed over the past 12-18 months and what will be the impacts on each real estate sector and region?
The combination of a strong economic recovery, some potential re-pricing in some sectors and markets, and shifting demand patterns resulting from structural changes emanating out of COVID should provide a really interesting set of core and value-add real estate investment opportunities.
– Lauren Hochfelder, Deputy Chief Investment Officer of Morgan Stanley Real Estate Investing (MSREI) and Head of MSREI Americas
– Toru Bando, Co-Head of North Haven Real Estate Funds (NHREF) and Head of MSREI Asia
– Brian Niles, Co-Head of NHREF and Head of MSREI Europe
Moderator: Tony Charles, Head of Global Research and Strategy of MSREI
– Exposure that reflects the future, not the past –
The US has dominated many global funds and indices for close to a decade, and yet the opportunity set for a global investor has evolved considerably - most obviously in Asia. Have global funds kept up?
With on-the ground research teams and three decades of experience in global stock picking, Comgest’s global strategy is navigating 2021 and beyond with over 40% exposure to Emerging Markets and Japan, as a result of the team’s bottom-up selection process. How can sustainable quality growth investors benefit from these regions whilst maintaining strong ESG credentials? Why have investors long underestimated Japan? Portfolio Manager Laure Négiar will discuss these themes in light of Comgest’s strategy, a portfolio positioned for the future, not the past.
Sara Rosner, AllianceBernstein | Jeff Schlegelmilch, Columbia University | Brendan Maton, IPE
COVID-19 has dealt a harsh blow to humanity and the global economy in a very short time, creating widespread uncertainty and massive disruptions to normal ways of life. Climate change may be taking place on a longer time frame, but there are clear connections to the pandemic. This webinar looks at applying lessons learned from the COVID-19 pandemic to the study of and response to climate change.
Sara Rosner, Director of Environmental Research and Engagement—Responsible Investment at AB, and Jeff Schlegelmilch, Director of the National Center for Disaster Preparedness at Columbia’s The Earth Institute will take a closer look at:
· How changes in human behaviour brought about by environmental and health stress can contribute to the public’s capacity to address severe global crises
· Challenges in scenario modelling, analysis and data availability from the epidemiological and climate perspectives
· The various paths to building back from the pandemic in terms of speed, approach and competing interests
· Integration of the private sector into disaster response going forward
· Sara Rosner, Director, Environmental Research and Engagement—Responsible Investment, AllianceBernstein
· Jeff Schlegelmilch, Director of the National Center for Disaster Preparedness, The Earth Institute, Columbia University
Matthew Corbett, Partner, Agriculture at Fiera Comox | Brendan Maton, IPE
Matthew Corbett, Partner at Fiera Comox will share a more than a decade worth of insights to:
describe the unique nature of Agricultural investing
outline how you can access the asset class
demonstrate the opportunities to enhance the return profile of your private markets allocation
On the face of it, Agricultural investing presents a highly attractive return and risk profile. A growing world population means that food production and demand can only increase whilst Investors in agriculture projects can benefit from inflation protection and returns that are non-correlated with other asset classes, as well as attractive and stable.
However, specialist knowledge, diversification, managing an evolving E.S.G landscape and accessibility are all critical in reaping the rewards of these investments. We estimate institutional ownership of agricultural assets no higher than 3 percent globally so there remains a steep learning curve for many investors but on the flip side, there are significant inefficiencies remaining in the market.
Matt started his Agri Investing career at Canada’s Public Sector Pension Investment Board (PSP Investments) before becoming a founding partner of Fiera’s Agricultural franchise and has invested around 2.5 billion in private market farmland and timberland over the course of the last decade. Matt currently serves on the board of several of Fiera Comox’ investee companies including Auvil Fruit Company.
Isabelle Scemama, Philippe de Martel, John O’Driscoll, Justin Travlos and Frederick Widl, AXA IM | Brendan Maton, IPE
ESG has rapidly increased in importance in the real estate industry and investment managers have a critical role to play. The disruption brought forward by the pandemic has accelerated the need to bring social and environmental priorities to the fore.
AXA IM Alts are committed to integrating ESG factors into everything we do, whether deciding where to invest or creating the built environment of the future. By meeting the challenges of today and tomorrow, we believe we will create long-term value for all our stakeholders.
In this webcast, our team will address ESG beyond the ‘E’: when technology, social impact and governance comes into play.
- A closer look at how we embed ESG in our practices and future developments, including the key role technology plays in this
- Solving social issues: the case for long-term institutional investment into residential. A case study on France
- The ever important need to align interests, especially given the current environment
We welcome your active participation and you can submit questions for the presenters to address throughout the session.
– Isabelle Scemama, Global Head of AXA IM Alts and CEO of AXA IM - Real Assets
– Philippe de Martel, Head of Fund Management – AXA Mandates
– John O’Driscoll, European Head of Transactions
– Justin Travlos, Global Head of Responsible Investment
– Frederick Widl, Country Head Switzerland, Real Assets
Net-Zero alignment and fossil-free investments: what is the role and impact of fossil fuels divestment for reaching Net-Zero goals?
The webinar will cover:
· How crucial is phasing out fossil fuels in 1.5°C scenarios?
· What level of differentiation between different fossil fuels is justified?
· What are the theoretical and empirical arguments for the fossil-free investment movement?
· Is it naïve to take the forward-looking commitments of fossil fuels companies into account?
· What is the most effective way for investors to influence companies?
· What are the risks of broad-stroke fossil fuel divestment strategies?
Michael Hunstad, head of quantitative strategies | Diana Olteanu-Veerman, CFA, quantitative equity senior strategist EMEA
Whether you were brave enough to hold or are now looking to build exposure to the value factor, we believe investors should take specific approaches to ensure their value portfolio delivers on expected financial and ESG outcomes.
Join our experts as they reveal a more thoughtful approach to portfolio construction that leverages both targeted factor exposures and ESG research. Key topics include:
• Combining value with factors like quality and momentum can result in higher returns and lower risk
• Naïve integration of ESG factors such as climate risk can negatively impact your factor exposure
• Remaining country and/or sector neutral reduces active risk and limits underperformance versus the benchmark
This material is directed to professional and eligible counterparties only and should not be relied upon by retail investors. The information is not intended for distribution or use by any person in any jurisdiction where such distribution would be contrary to local law or regulation. Northern Trust and its affiliates may have positions in and may effect transactions in the markets, contracts and related investments different than described in this information.
Investing involves risk- no investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment.
Northern Trust Asset Management is composed of Northern Trust Investments, Inc. Northern Trust Global Investments Limited, Northern Trust Fund Managers (Ireland) Limited, Northern Trust Global Investments Japan, K.K, NT Global Advisors, Inc., 50 South Capital Advisors, LLC, Belvedere Advisors LLC and investment personnel of The Northern Trust Company of Hong Kong Limited and The Northern Trust Company.
Now more than ever, investors are turning to ETFs and index funds to build more sustainable portfolios. In this webinar, experts at MSCI & iShares explain why sustainable portfolios start with indexing and how indexing is helping make sustainable investing mainstream. They will also discuss the state of the sustainable investing market today, key trends to look for in the future and the different ways to build sustainable portfolios that target a variety of investment goals.
IAN MORTIMER, Portfolio Manager, Guinness Asset Management on Why Quality Matters:
The approach: to invest in good quality businesses with persistently high returns on capital and strong balance sheets, that are highly cash generative, and that are trading at attractive valuations. Such businesses are best placed to pay a sustainable and growing dividend in the future.
A balanced approach – seeking a return from a combination of cash flow growth, multiple expansion, and dividends – alongside a focus on quality characteristics puts the investor in a good position whatever the future market direction in 2021 and beyond.
JOHN TOBIN, Portfolio Manager, Epoch Investment Partners explains why Capital Allocation is Key.
A company should reinvest capital if the expected return on invested capital is greater than the company’s cost of capital. Remaining free cash flow should be returned to shareholders via shareholder yield.
Capital allocation matters, because decisions on how to allocate cash flows – whether to reinvest in order to grow a company, or to return capital to shareholders – can create or destroy long-term shareholder value.
Recent years witnessed a significant increase in interest from investors in factor and multi-factor investing. 2020, however, turned out to be an unpleasant year for many investors in factor-based strategies. This includes the widely cited value factor drawdowns, but also multi-factor strategies themselves, particularly those that are put forward to investors as providing a diversified exposure to risk factors, which many did not. In this webcast we shed light on why factor investing in its common form and in particular multi-factor portfolios may not deliver investors the balanced risk exposures and diversification effects, that they typically hope to achieve or are promised to obtain by spreading their investments across multiple factors. We explore common implementations of multi-factor strategies revealing that many suffer from unwanted biases, then highlight the unintended consequences of these hidden biases.
This webcast channel is for pension funds and other institutional investment professionals in Europe, the USA and Asia. It is particularly relevant for pension fund executives, trustees, consultants and investment managers. IPE will be bringing its community live interviews with leading figures in the market, hosting roundtable discussions on specific topics such as asset allocation and also sharing latest thought-leadership from investment experts.
Risk planning for the next market crisisRich Donnellan, Nasdaq Asset Owner Solutions | Soo Kobberstad, LPPI | Tony Yiu, Solovis | Brendan Maton, IPE[[ webcastStartDate * 1000 | amDateFormat: 'MMM D YYYY h:mm a' ]]64 mins