53: How boards can work best – Sacha Sadan, Director of Corporate Governance
Good governance is crucial to all boards, whether they oversee a FTSE 100 multinational, a multi-billion pound pension scheme or a national charity. There is no one-size-fits-all approach to how boards should be run but through Sacha and his team’s extensive experience in corporate engagement, they’ve learned that there are plenty of ways to evolve and enhance effectiveness.    We know that pre...
34m Jun 05, 2019
34m
52: Lord Stern at the LSE: The urgency, opportunity and acceleration of climate action
We’ve heard a lot about the need for urgent climate action in the past few months. Sobering documentaries from David Attenborough and hard-hitting activism from Greta Thunberg and the Extinction Rebellion have brought the issue to the forefront of people’s minds. Investors have a pivotal role in meeting the challenge of financing the transition to a low-carbon future and in finding the wealth o...
27m May 29, 2019
27m
51: Should we move to a four day week?
Is a four day working week realistic — or desirable? Chris Jeffery from our Asset Allocation team and Lara Bernard-Villeneuve in our Active Fixed Income team have looked at the data and think it’s more than a leftist’s pipe dream. Set in the context of a history of declining working hours in industrialised countries, the move does not seem so stark – and need not necessarily trigger a drop in w...
31m May 22, 2019
31m
50: In conversation with: Madeleine King, Co-Head of Pan European Investment Grade Research
In this episode, we talk to Madeleine about her path from netball to new issues. Growing up in Lancashire, she studied Mathematics and Economics, before starting her career on the fixed income floor at Barclays. Having moved from investment banking to asset management nearly four years ago, she can no longer call herself a newbie. Madeleine talks through the changes she has seen so far during h...
19m May 17, 2019
19m
49: Behind the scenes with Active Equities: Access to management
Once again we’ve gone behind the scenes to find out how LGIM’s investment teams manages funds. The Active Equities team places a major emphasis knowing the companies in which they’re invested inside and out. This could be anything from knowing how a company will respond to a competitor’s latest innovation to how their strategy will hold up for the next 10 or 30 years. It’s all about building t...
30m May 15, 2019
30m
48: Allocate nimbly and diversify with purpose
It’s said that the only thing that goes up in falling markets is correlation. Diversification across uncorrelated assets, differentiated sources of returns, and foreign currency exposure can help provide natural risk hedges and still deliver the performance sought by investors. This week, we’re talking to members of LGIM’s Asset Allocation team about why investors need to diversify with purpose...
27m May 09, 2019
27m
47: UK broadband infrastructure: at a crossroads
The race to provide faster broadband is on. But will incumbents be disrupted by the challenger providers: the 'altnets'? The upcoming set of results from BT and their strategy for the future will be crucial in determining the answer. In 2018, UK consumers spent a total of one day a week online, more than twice as much as in 2007. Time spent online, demand for data and the number of devices con...
20m May 01, 2019
20m
46: Build to rent: Rise of the institutional landlord
This week we’ve returned to that famous British obsession: housing. Now that 20% of the UK population are choosing to rent their home, the expectations of lifestyle renters for their home developments have risen accordingly – such as allowing pets or permanent decoration. The build to rent sector involves the large scale development of new housing stock with the needs of ‘lifestyle renters’ in ...
22m Apr 24, 2019
22m
45: In conversation with: James Carrick, Global Economist
Variable or fixed rate mortgage? That’s the first question asked once someone knows you’re an economist, in James’s experience. Despite an original plan to study computer programming, when the school didn’t offer the course he turned to economics, following it through academia and into the Treasury. From the world of computer games to interest rate expectations, we explore James’s search for th...
24m Apr 19, 2019
24m
44: Active Ownership 2019: A year of corporate governance
From the Melrose-GKN bid to the first results of our Climate Impact Pledge, 2018 was a crucial year for better understanding the decisions companies make and how we can make sure the interests of investors are looked after. Technological developments mean that companies are disclosing more data than ever before on their policies and other environmental, social and governance (ESG) metrics, inf...
18m Apr 16, 2019
18m
43: China: The consumption powerhouse
Investing in the Chinese economy often deals with particularly impressive numbers. This is an economy which has tripled in size since 2005, even now contributing approximately a third of all world GDP growth despite fears that China’s growth has fallen to a ‘mere’ 6%. When a fifth of all travel expenditure comes from the less than 10% of Chinese citizens who hold passports, the Chinese consumer...
39m Apr 10, 2019
39m
42: Let’s rebuild America
The recent soft patch in growth and dovish shift from the Federal Reserve has made it less likely that the US enters recession next year. While 2019 may not be the year that the US wholly reinvests in its crumbling infrastructure, it’s certainly at the top of both parties’ 2020 policy targets and neither side will want to be outdone. The market has become very pessimistic about infrastructure-r...
14m Apr 03, 2019
14m
40: Integrating ESG into a factor portfolio
As record numbers look to integrate sustainable investment considerations into their portfolios, it comes as no surprise that the world of factor-based investing is not immune. According to a 2018 survey conducted by FTSE Russell, 55% of factor investors are looking to incorporate environmental, social and governance (ESG) company analysis but as yet, there’s been no well-defined blueprint as t...
25m Mar 27, 2019
25m
39: Millennials on money
What do you think of when you hear the word ‘millennial’? The archetype most prevalent in advertising and popular culture is one of an early-twenties, affluent (but not too affluent), city-dweller. But the 1.8 billion generation known as millennials are anywhere between the ages of 23 and 37 – by and large they have left undergraduate education, are well established in the workforce and their s...
22m Mar 20, 2019
22m
38: In conversation with: Ben Bennett, Head of Investment Strategy and Research
In the late 1990s, when the world of equities was one of pinstriped suits and hard sells, European credit presented exciting new opportunities with a brand new currency. Leaving Lehman Brothers just a few months prior to its downfall, Ben came to Legal & General Investment Management at the epicentre of the global financial crisis. Understanding the financial world as one of simply matching bo...
26m Mar 15, 2019
26m
37: An ESG checklist for trustees
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 finan...
26m Mar 13, 2019
26m
36: The changing world of index funds
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...
24m Mar 06, 2019
24m
35: In conversation with: Anton Eser, CIO
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 an...
19m Mar 01, 2019
19m
34: Property: The wellbeing investment opportunity
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 main...
26m Feb 27, 2019
26m
33: DC: 50 shades of green
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...
35m Feb 20, 2019
35m
32: In conversation with: Simon Chinnery – painter, poet, Peru
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...
30m Feb 15, 2019
30m
31: Log on to the cyber opportunity
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 i...
23m Feb 13, 2019
23m
30: DC: De-risking dilemmas
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 pro...
30m Feb 06, 2019
30m
29: Low-carbon transition: Are we there yet?
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. ...
31m Jan 30, 2019
31m
28: Quantitative tightening: What’s it all about?
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 ...
28m Jan 23, 2019
28m
27: Growth investing – A stock eat stock world
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 ...
28m Jan 15, 2019
28m
26: CIO Investment Outlook 2019: Brace for a credit squeeze
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 Offi...
27m Jan 13, 2019
27m
25: Property: What makes a successful city?
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 ...
39m Jan 09, 2019
39m
24: Investing in emerging market debt
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 D...
25m Jan 02, 2019
25m
23: DC: Making a statement with statements
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 ...
22m Dec 19, 2018
22m
22: Decumulation Demystified: The natural income buffer
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 natu...
21m Dec 11, 2018
21m
21: UK housing market: A home run?
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 capi...
23m Dec 05, 2018
23m
20: Better diversity, better decisions
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 s...
30m Nov 28, 2018
30m
19: Late cycle dynamics and low-risk portfolios
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 Re...
23m Nov 21, 2018
23m
18: Politics & policy: Freedom for the central banks and unconventional policy
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...
27m Nov 14, 2018
27m
17: DC: Reducing money worries with financial wellbeing
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...
23m Nov 07, 2018
23m
16: Property: The future of leisure
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 ar...
24m Oct 31, 2018
24m
15: DB: The strategic case for alternative credit
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 h...
17m Oct 23, 2018
17m
14: Behind the scenes: LGIM Asset Allocation team
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...
24m Oct 16, 2018
24m
13: Decumulation Demystified: Should we retire the 4% rule?
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 re...
19m Oct 09, 2018
19m
12: ESG versus ethical investing
A flood of ‘responsible investment’ funds into the market has caused some confusion in the press about what kinds of companies should be included or excluded from these products. Jeannette Andrews, Corporate Governance Manager, lays out the key distinctions between incorporating environmental, social and governance (ESG) concerns for financial reasons and ethical concerns for moral purposes. L...
24m Oct 04, 2018
24m
11: Property investing – moving on from the mainstream
Shops, offices and sheds: the three cornerstones of commercial property investment. But now property investors are starting to increase allocations to alternative sectors in search of income resilience. Eleanor Jukes discusses why more and more are increasingly looking to this area of property investing, the types of properties drawing most attention and why alternatives really need a better na...
22m Oct 01, 2018
22m
10: DC: Challenging retirement stereotypes
The landscape for defined contribution is changing – for savers and retirees, employers and trustees, and for those who are responsible for managing client assets. In partnership with Ignition House, we spoke to some DC members (aged between 55 and 65) about their saving and spending patterns as well as their approach to life after work. One of the key findings was the desire for flexibility. ...
37m Sep 20, 2018
37m
9: Demographic strategy: the cost of unhealthy living
Raising the retirement age can help with the fiscal costs of living longer – but our unhealthy lives could force us to look at other options. We’ve become used to rising life expectancy, yet lately statistics seem to show that the rate of improvement has slowed. What challenges does this pose to policymakers and how can they tackle this trap? For more information on today’s episode, visit htt...
23m Sep 20, 2018
23m
8: E-commerce logistics: Warehouse robots and disruptive retailers
A Chinese warehouse fulfils 200,000 orders a day and yet employs only four human workers. Automation technologies are disrupting the e-commerce logistics industry at an incredible rate and consumers and certain retailers are poised to make significant gains. In this episode, we discuss Ocado, Amazon, JD.com and many more which are embracing this technological change. To find out more, visit ht...
33m Sep 13, 2018
33m
7: Factors: Should we be worried about overcrowding or capacity?
Given the rise in popularity of factor-based investing, there’s a lot of concern in the market about certain factors becoming too expensive (overcrowding) and that the costs of factor indices have increased (capacity). Today’s episode with David Barron looks at whether there’s truth behind these fears and if index investors should indeed be worried. For more information on today’s episode, vis...
18m Sep 09, 2018
18m
6: DC Governance checklist: Is your scheme following best practice?
That’s the question asked by Colin Clarke, Head of Product Policy Strategy. Ultimately, if advisers and service providers are not performing as expected, we believe trustees or sponsoring employers should push them to improve the situation as quickly as possible or replace them. In our conversation, Colin lays out the governance factors instrumental in delivering your DC scheme objectives. For...
23m Sep 05, 2018
23m
5: DB: Raising cashflow awareness
As defined benefit pension schemes mature and become cashflow negative, cashflow management becomes increasingly important. Schemes, particularly underfunded ones, may be better off focusing on being cashflow aware than being cashflow matched. In this discussion, Graham Moles highlights that it remains important not to consider cashflow management in isolation of other scheme risks. For more i...
9m Sep 03, 2018
9m
4: ROBO Global: Investing in the robotics revolution
From smart speaker devices in our homes to driverless tractors in the agricultural sector, the robotics revolution is already here – the question is, how can you invest in it? To find out more about the latest developments in the robotics, automation and AI space, sign up for the ROBO Global newsletter here: https://www.roboglobal.com/newsletter-signup/ Guest: Richard Lightbound Host: Mark Ch...
24m Sep 03, 2018
24m
3: Battling behavioural biases
Why are meetings dominated by the Highest Paid Person’s Opinion (HIPPO)? Why do people overestimate their share of household chores? Understanding how the mind can help or hinder investment success is a cornerstone of fund management. Increasingly, investors are using knowledge about investment biases to design better investment solutions and gain an advantage over the rest of the market. For ...
18m Sep 03, 2018
18m