Asset TV reposted this
What three questions would you answer for pension funds? (Or want answered!) Please add any thoughts on my choice or what you would suggest in the comments below! In May, Sam Rossiter of Asset TV kindly offered me the chance to be part of a Pension Pod series - 3 questions, 3 minutes, I could choose the questions. Great initiative - but which questions? For me, sustainability is not just the detail, not just the impact of individual investments and the choice of increasing the long-term beneficial rather than harmful impacts to society. And not just that the long-term benefits or harms will similarly influence long-term market returns. It is that sustainability is strategic. If you fail to integrate the implications of sustainablity risks into your strategy then your strategy will fail. Probably in the 2020's. As almost no funds have currently worked through and embedded the implications of sustainability risks at the strategy level - this implies that we are facing industrial-level failure. So I chose three questions, to highlight this challenge and point toward solutions: 1. If you use efficient frontiers in your asset allocation, why the 2020's may destroy you! 2. What are the five implications that they should have told you from your climate scenario analysis? 3. How are three horizons thinking and applying your agency critical for DC fiduciary duty, and probably DB as well? I hope you find these interesting. I welcome further discussion - especially on the need to consider sustainability and uncertainties as part of a fund's strategic risk management. Mike Clark Charlotte O'Leary Nico Aspinall Amlan Roy Caroline Hopper Mark Scantlebury Nick Silver Willemijn Verdegaal Sandy Trust Louise Pryor Claire Jones Simon Jones Louise Davey Mark H. James Alexander Ana Yang Julius Pursaill Mark Thompson Sarah Leslie Mark Cliffe James Orr Nick Dexter https://lnkd.in/esVTqfkm