XxX | Feature
Contents
Editorial
ENERGY: AT THE CROSSROADS
Vladimir Putin has highlighted how difficult it will be for the world to end its reliance on oil and gas. When Russia’s president ordered his tanks to invade Ukraine in February he started a chain of events that forced governments to warn of potential blackouts, to borrow bil- lions of pounds to keep energy prices low, to cosy up to regimes in the Middle East and even nationalise an energy company. Indeed, Putin’s influence over Europe’s gas supply has pushed energy security to the top of the political agenda. There were already concerns before the first shot was fired in Ukraine. Prices were ris- ing after the world went back to work following the lockdowns ordered to control the spread of Covid. Demand for gas increased in the final months of last year when we were told there was not enough wind in the North Sea to drive turbines. A sense of urgency has led governments to look at more traditional sources of energy to solve the crisis. Boris Johnson looked at expanding nuclear power’s influence over the national grid, while Liz Truss lifted the ban on fracking weeks after becoming prime minister. Transitioning from an extractive economy to one which is regenerative is a long jour- ney and there are bound to be problems along the way, just as we are experiencing today. The question is, with the huge profits extractive companies are making and with wind turbines only turning when the wind blows, will investors turn their back on renewable energy? We find out from page 18.
The war in Ukraine also features in our analysis of the rising geopolitical tensions, which could see blocs forming and therefore limiting the investment universe if sanc- tions are imposed. Our coverage starts from page 22. We also look at how impact investing is maturing as an investment style and why some believe it is on its way to becoming a mainstream strategy. Find out why from page 32. Elsewhere, inflation is raging and gilt yields are rising, so how should defined benefit schemes approach de-risking. Read our view from page 42. At a time of economic uncertainty could property be the asset class to protect long-term investors through such turbulent times. We take a look from page 46. Finally, we speak with David Vickers, chief investment officer of Brunel Pension Part- nership, about responsible investing, the problem with data, investing locally and try- ing to get hold of Boris Johnson. Read what he has to say from page 12.
Mark Dunne Editor
m.dunne@portfolio-institutional.co.uk
Issue 117 | October 2022 | portfolio institutional | 3
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