XxX | Feature


Contents


Editorial


HEDGE FUNDS: TO THE RESCUE


The time has come. The moment that justifies the decision to diversify institutional portfolios has arrived. With markets and the macro picture so unpredictable, the only issue that appears cer- tain is that there will be volatility. And such conditions have boosted the attractiveness of hedge funds as a driver of alpha. Historically, the asset class has delivered in such times. The question we ask in this month’s cover story is: can they deliver again? Find out from page 16. Also in need of a saviour is the US. With the country experiencing economic and polit- ical turmoil, some are questioning if it’s losing what made it exceptional during the 20th century. With another divisive election looming on the horizon potentially causing further uncertainty, which US sectors could benefit long-term investors and which should they avoid? We take a look from page 20. Meanwhile, closer to home, British pension schemes have fallen out of love with domestic equities. Research shows that such ownership has collapsed to less than 2% as schemes look globally for their risk assets. The lack of sexy tech stocks has also been blamed. Yet some believe the returns from holding the right shares could be attractive and that valuations are improving, so should pension schemes be more optimistic? Find out from page 38. Most British pension schemes are, however, focused on making a positive impact on the environment and creating a more equal society. Their fixed income portfolios are a big part of this strategy, so we look at how they are lending sustainably from page 32. We also speak to Damien Pantling, head of the Royal County of Berkshire Pension Fund, about investing in infrastructure on their own terms, the three elements of his investment philosophy, preparing for cashflow negativity and embracing pooling. The interview starts on page 12. Finally, we look at how a change of strategy at the Church of England has seen Dan Neale take the reins on social issues. Read how he is shaping such investments and how the church is tackling climate change and nature-related risks from page 28. We hope you enjoy the issue.


Mark Dunne Editor


m.dunne@portfolio-institutional.co.uk


Issue 127 | October 2023 | portfolio institutional | 3


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