The guest for this episode of The Professional Investment Podcast is Phil Butler, deputy chief investment officer for the People’s Pension. His news story of the week is LCP’s latest research showing progress from master trusts on climate change policy but more to be done in the detail.
We discuss how asset owners should approach stewardship – how they need to be clear-eyed about what they need to achieve and work closely with asset managers on this issue as well being prepared to collaborate with others.
People’s decision to move away from pooled funds to segregated mandates while also switching managers illustrates what can be won by managers whose sustainable investment philosophy is aligned with those of asset owners.
But even with the best efforts, trying to affect change through stewardship can feel like hard work. This is one of the appeals of a private asset portfolio – a more direct relationship can lead to greater influence on the company. Phil talks about how People’s is thinking about UK productive assets.
At the end of the half hour, Phil and I get more philosophical about how to think about climate risk across the whole portfolio and how to consider it across the life time of a member from building up their wealth to spending it over their retirement.
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