XxX | Feature Contents Editorial


THE GREAT ROTATION


Change is coming. It appears that with inflation, higher government spending and an economic recovery on the cards, growth stocks are falling out of fashion and investors could be about to rush to value.


This could be a huge event for pension schemes, so our cover story this month looks at what investors can expect from value investing post-Covid. Our report starts on page 18. Our ESG coverage this month focuses on sustainable debt. For institutional investors bonds are an important part of their portfolios and, as we discussed in our April edi- tion, they provide more than income to pension schemes. Yet adding sustainability to such mandates stretches beyond labelled bonds to include traditional paper. We look at how pension schemes are using conventional bonds to help achieve their sustainable targets. All is revealed from page 34. Favourable demographics are just one factor behind emerging markets driving most of the globe’s growth. With interest rates depressed across the developed world, investors are looking away from the traditional debt markets for income. But this changed when the pandemic hit early last year. Investors ditched emerging nation debt as uncertainty engulfed the world. So, what happened next? We brought a group of experts together to find out. You can read what they had to say from page 22. We also created a panel of professionals to discuss the growth of impact investing. Turn to page 44 to find out how investors can make a measurable environmental and social impact with their capital, how they are overcoming barriers to make a difference and how it could affect returns.


Another growing strategy for institutional investors, both DB and DC, is infrastructure. The asset class diversifies portfolios and provides secure and repeatable, long-term income. Political will to upgrade and improve the UK’s aging infrastructure is strong, which is expected to create plenty of opportunity in the coming years. We look at what’s hot and what’s not from page 50. Finally, we speak to Gordon Ross about taking over as chief investment officer at LGPS Central during a global pandemic. You can read about the challenges he has faced while trying to adopt a business-as- usual approach from page 14.


Mark Dunne Editor


m.dunne@portfolio-institutional.co.uk


Issue 103 | May 2021 | portfolio institutional | 3


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