Investor engagement and stewardship programmes seek to change corporate behaviour, reduce risk and shape positive real world impacts. But experts notice that to be most effective investors need to ensure they are seeking to change the most material and important issues.
Railpen, well known for its belief in the cost and control benefits of inhouse management visible in its large in-house team has also built up an internal engagement team to better align stewardship with its ESG objectives, particularly ambitious net zero targets.
The transformation of investment instruments in fixed income has altered traditional 60:40 portfolios. But for some investors, the hunt for yield is a rising cause for concern that could lead to another credit crisis.
Michelle Ostermann, managing director of investments at the £30 billion Railpen discusses the pension fund's continued evolution including ongoing organisational change, more assets in-house, a new investment decision making framework, and an increased allocation to private assets.
Innovation is more important than ever given the uncertain and ambiguous times that lie ahead for institutional investors like climate change, political dysfunction and poor returns. “Returns can only come from an ecosystem that works and we need innovation to do this,” said Roger Urwin, global head of investment content, Willis Towers Watson speaking at the Fiduciary Investors Symposium at Cambridge University.
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