Infrastructure & Real Asset Investment Strategies
08.45 : Registration and Coffee
09.15 : Welcome & Opening Remarks
Trevor Cook, Managing Director, Specialist Pension Services
09.25 : Session 1: Infrastructure
Richard Elmslie, Co-Chief Executive Officer and Co-Chief Investment Officer, RARE Infrastructure
Listed Infrastructure - Providing Stable Income in Changing Times
Investors are on the hunt for alternative sources of income for cash flow driven solutions. Listed infrastructure can provide investors with an attractive alternative source of income. Infrastructure assets not only provide stable income streams through economic cycles but the dividends paid out should be growing and recurring over time. Infrastructure also acts as a diversifier, having lower beta and correlation to other assets. The underlying return streams of infrastructure companies (essential services, backed by hard assets with a degree of price certainty) are strongly linked to the regulatory or contractual frameworks in place, rather than typical drivers of equity and bond returns. In rising rate periods, increases can be passed through at the next regulatory reset.
Robert Hardy, Managing Director, J.P. Morgan Asset Management
How can Core Infrastructure be Defensive?
Infrastructure is attractive to long term investors because it offers downside protection, recession resilience, diversification, inflation protection in addition to a stable income stream. An important lesson learned from the Great Recession is that only core investment strategies in infrastructure offer these characteristics. We define core infrastructure as investments with cash flows streams that are forecastable for at least a decade, preferably more. An implication is that expected yield should make up at least half of the expected return in core infrastructure. With that approach, there is strong evidence that core infrastructure is one of the strongest investment strategies in terms of downside-protection.
10.40 : Coffee/Tea
11.10 : Session 2: Real Assets
John Dewey, Head of Investment Strategy, Global Investment Solutions, Aviva Investors
Real Assets within Investment Strategy
The combination of falling bond yields and bigger deficits, coupled with negative cash flow is placing conflicting pressures on pension funds: higher required returns means investing more in growth assets and less in bonds, but schemes with net cash outflow also need to avoid being a forced seller of volatile assets. How can trustees use real income assets to help solve their funding conundrum?
Keith Balter, Director of Economic Research, Hancock Natural Resource Group (HNRG)
Timber and Farmland: working together in a mixed asset portfolio to reduce variance in returns
Timberland and farmland assets have been used and tracked as components of institutional portfolios for over two decades, establishing a strong historical record of performance, low to moderate risk, and favourable diversification characteristics. While investors have generally treated timberland and farmland as separate asset classes, both are income generating and land appreciation investments with biological growth components. Both offer comparable risk-adjusted returns and inflation protection. Structuring coordinated investments in these two natural resources has the potential benefits of generating operational efficiencies and augmenting the risk-reducing diversification of a broader portfolio.
12.25 : Drinks and Lunch
13.35 : Session 3: Other Opportunities
Moderator: Ray Maxwell, Founder, Priv-Ity Limited
Simon Eaves, Head of European Clean Energy Infrastructure, Capital Dynamics
Jorge Huitron, Senior Consultant, Aon
Best Ideas in Global Real Assets: Value Add & Opportunistic Strategies
What are the global real asset investment considerations?
The importance of manager selection
Typical fund characteristics
15.10 Session 4: ESG Issues and Pension Fund Insights
Moderator: Georg Inderst, Independent Consultant
Charles W. Donovan, Director, Centre for Climate Finance and Investment, Imperial College Business School
Climate Change, Energy Transition, and Responsible Investment Strategies
The transition to a lower-carbon global economy presents opportunities and threats to real asset investors. Sustainable infrastructure offers a compelling route to profit from this rapidly developing theme, but investors must be careful to understand an evolving set of market, regulatory, and business model risks. Can real asset strategies help insulate portfolios to the disruptive impacts of climate change?
Pension Fund Insights
How should pension funds react to the major economic challenges that lie ahead? A panel of pension scheme executives and trustees will talk about their pension fund's infrastructure investment challenges and solutions. Panelists to include:
Sir Merrick Cockell, Chairman, LPFA
Alan Pickering, Chair, Plumbing Pensions Ltd.
16.25 : Drinks Reception & Close of Conference
Pension Funds can no longer afford to ignore ESG or sustainability. This conference therefore aims to help pension funds to consider ways of integrating these into everyday investment management and to explore whether doing so will improve or reduce investment performance. We will examine a range of strategies taking into account the risks associated with different investment approaches and practical implementation issues.
The conference is by invitation only for pension funds and other institutional investors. If you are not already receiving an invitation please contact us. A limited number of Complimentary invitations are usually available to genuine pension fund representatives (executives and trustees) and other approved institutional investors. However, to ensure we have room for as many funds as possible, we have to limit free places to 2 attendees per approved organisation thereafter a reduced rate fee is payable per delegate. Furthermore, SPS always reserves the right of admission (free or paid) and our decision is final.
June 7, 2018 The Westbury, Dublin
June 14, 2018 Le Meridien Piccadilly, London
July 12, 2018 Le Meridien Piccadilly, London
August 30, 2018 Le Meridien Piccadilly, London
September 13, 2018 Le Meridien Piccadilly, London
September 20, 2018 Apollo Hotel, Amsterdam
October 2, 2018 7A Strandvägen, Stockholm
October 11, 2018 Le Meridien Piccadilly, London
November 8, 2018 Le Meridien Piccadilly, London
November 15, 2018 Le Meridien Piccadilly, London
November 22, 2018 V&A Marriott, Manchester
December 11, 2018 Le Meridien Piccadilly, London