XxX | Feature Contents Editorial


INVESTING THROUGH COVID


Uncertainty. The world is full of it. Nobody knows how the pandemic’s impact on the world’s economies and markets will play out. Will the feared second wave arrive and further damage economic confidence? Will we still be in lockdown this time next year? Will we wake up tomorrow to find that Covid has disappeared? Such uncertainty means that economic projections, even those that have been revised, have to be treated with caution. No matter the environment, those responsible for funding savers’ retirements have to man- age uncertainty and volatility. It’s part of their job.


While market commentators, consultants and asset managers have had their say on what could happen and how institutional investors should react, it is the asset owners who have to make the decisions. They are the ones responsible for pushing the buy or sell button. Pension schemes have implemented strategies to manage situations such as this. Have they worked? We will soon find out.


Of course, while investors may have seen the value of their portfolio fall, their liabilities rise and, perhaps, suffered drop in income, the crisis has also created opportunity. The global health crisis could damage the investment case of some assets while turning investors bullish on others. Will schemes be seduced into changing their investment strategy if valuations improve? For this month’s cover story, we brought together pension schemes and professional trustees to find out how they are investing through the Covid crisis. Our coverage starts on page 20. For those wanting a break from the pandemic, hopefully a look at how serious ESG is being taken by emerging market companies will provide some relief.


Our eight-page examination of how emerging nations are approaching environmental, social and governance risk starts on page 28. Another Covid-free article is our take on the newest avenue for trustees to de-risk their schemes, the so-called superfunds. Start reading from page 42. Stay safe.


Mark Dunne Editor


m.dunne@portfolio-institutional.co.uk


Issue 95 | August 2020 | portfolio institutional | 3


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