L&G Talks Asset Management

Many investors don’t think they need an ETF trading strategy – that is until it’s too late. After all, how different can it be from trading a stock?  But buying and selling ETFs requires a much clearer view on the liquidity of the underlying securities. According to this week’s guest, Annacarla Dellepiane, Head of ETF Capital Markets, employing best practices can shave crucial basis points off of your next transaction. This can include considering market volatility in relation to bid/ask spreads and avoiding specific market events such as opens, close or the dates of major announcements. Find out more about our ETF capabilities here: http://www.lgimetf.com/institutional/uk/en-gb?cid=lgimtalks ·         Annacarla Dellepiane, Head of ETF Capital Markets ·         Robert StGeorge, Content Manager We want to hear from you! Email us at mark.chappel@lgim.com with your thoughts on the podcast and any suggestions of the guests or types of content you’d like to see covered. This podcast is intended for investment professionals, and shouldn’t be shared with a non-professional audience. This podcast should not be taken as an invitation to deal in Legal & General investments. Any views expressed during this recording belong to the individuals and are based on market conditions at the time of recording, and do not reflect the views of Legal & General Investment Management. Legal & General Investment Management is authorised and regulated by the Financial Conduct Authority. Legal & General Investment Management, One Coleman Street, London, EC2R 5AA. Register in England no. 2091894. All rights reserved. No part of this audio may be reproduced in whole or in part without the prior written consent of Legal & General Investment Management.

Where have all the deficit hawks gone? With mainstream politicians no longer comparing government finances to household saving habits, it appears that a new wave of fiscal spending is on the horizon.      This is part of a growing debate around Modern Monetary Theory, also known as MMT or “a dangerous proposition” if you’re the ECB, about why spending should only be constrained by inflation, how unemployment exists by choice, and that fiscal policy should be the main tool to control economic cycles.     In a world where central banks have become persistently more dovish as inflation targets are missed, the tenets of MMT mean that it has become much easier for politicians to run up larger deficits. In this episode, we explore the potentially radical implications this theory and the changing political landscape could have for inflation and investors’ portfolios.     Find more of the team’s insights on Politics & Policy here: http://www.lgim.com/uk/en/insights/our-thinking/long-term-thinking/?cid=lgimtalks     ·         Alex Mack, Fixed Income Fund Manager ·         Mark Chappel, Senior Content Manager     We want to hear from you! Email us at mark.chappel@lgim.com with your thoughts on the podcast and any suggestions of the guests or types of content you’d like to see covered.     This podcast is intended for investment professionals, and shouldn’t be shared with a non-professional audience. This podcast should not be taken as an invitation to deal in Legal & General investments. Any views expressed during this recording belong to the individuals and are based on market conditions at the time of recording, and do not reflect the views of Legal & General Investment Management. Legal & General Investment Management is authorised and regulated by the Financial Conduct Authority. Legal & General Investment Management, One Coleman Street, London, EC2R 5AA. Register in England no. 2091894. All rights reserved. No part of this audio may be reproduced in whole or in part without the prior written consent of Legal & General Investment Management.  

Sonja brings a wealth of experiences to her new role as Chief Investment Officer. But at school, her dream job would have been to become a professional horse-rider and fill her time with dressage and show jumping. An apprenticeship at Deutsche Bank introduced her to the world of finance but it was internships at DWS, a consulting practice and in marketing for a not-for-profit organisation which showed her where her career passions lay.  Sonja Laud discusses how there is no status quo for asset managers in a time of structural shifts in regulation, and client demand. But it’s also a sign that asset managers as an industry need to step up to the big societal issues on which clients are looking for action. With regards to LGIM, its clear to her that the next trillion under management will have to come from a very different source than the first.  Hear more about her personal experience with coaching and the importance of mentoring in this wide-reaching episode.  Quick note: This episode was recorded in the previous month while Sonja was still Deputy CIO so there might be a few confusing references!  ·         Sonja Laud, Chief Investment Officer·         Eliza Grimond, Content Manager  We want to hear from you! Email us at mark.chappel@lgim.com with your thoughts on the podcast and any suggestions of the guests or types of content you’d like to see covered.  This podcast is intended for investment professionals, and shouldn’t be shared with a non-professional audience. This podcast should not be taken as an invitation to deal in Legal & General investments. Any views expressed during this recording belong to the individuals and are based on market conditions at the time of recording, and do not reflect the views of Legal & General Investment Management. Legal & General Investment Management is authorised and regulated by the Financial Conduct Authority. Legal & General Investment Management, One Coleman Street, London, EC2R 5AA. Register in England no. 2091894. All rights reserved. No part of this audio may be reproduced in whole or in part without the prior written consent of Legal & General Investment Management.

We’d all love to predict with pinpoint accuracy the timing of any future bouts of volatility and the impact it would have for schemes’ returns. In turbulent times, investing can be like an endless game of ‘whack-a-mole’ – as one risk is removed, another can come to light. While fortune-telling might not yet be an exact science, there are still a number of methods defined benefit schemes can employ to manage their risk.     In this week’s episode, we look at how aligning your asset strategy to your long-term goals, rather than short-term market cycles, can help provide some portfolio protection. The team also discuss the benefits of using natural cashflows to meet the need for income which avoids the risk of selling assets in stressed conditions.      You can find the full article discussed in this episode here: http://www.lgim.com/uk/en/insights/our-thinking/client-solutions/managing-risk-in-turbulent-times.html?cid=lgimtalks     ·         Femi Bart-Williams, Senior Solutions Strategy Manager ·         Peter Boakes, Solutions Strategy Manager ·         James Kinsley, Senior Consultant Relations Executive     We want to hear from you! Email us at mark.chappel@lgim.com with your thoughts on the podcast and any suggestions of the types of content you’d like to see covered.     This podcast is intended for investment professionals, and shouldn’t be shared with a non-professional audience. This podcast should not be taken as an invitation to deal in Legal & General investments. Any views expressed during this recording belong to the individuals and are based on market conditions at the time of recording, and do not reflect the views of Legal & General Investment Management. Legal & General Investment Management is authorised and regulated by the Financial Conduct Authority. Legal & General Investment Management, One Coleman Street, London, EC2R 5AA. Register in England no. 2091894. All rights reserved. No part of this audio may be reproduced in whole or in part without the prior written consent of Legal & General Investment Management.

The responsibility for people’s financial futures has increasingly been transferred to the individual yet a broad majority of the population remain wary of investing. Asset managers, advisers and pension schemes need to emotionally engage people to make investing not only relevant but also appealing. Technology is by no means the panacea to this challenge but it can be a crucial component of that engagement.     The personal finance landscape has gone through a technological upheaval and yet still seems like it has a long way to go. From thoughtfully designed propositions to tailored user experiences, this episode explores some of the lessons learned from Legal & General’s efforts to ‘engage the nation’ in investing, the ways they’ve invested and developed their technology and what’s the future for the direct-to-consumer industry.     To find out more about the Personal Investing side of Legal & General visit https://www.legalandgeneral.com/investments/    Helena Morrissey, Head of Personal Investing, L&G Steve Davis, Head of Propositions, LGIM Strategy Catherine ‘CJ’ Fildes, Senior Communications Manager, L&G     We want to hear from you! Email us at mark.chappel@lgim.com with your thoughts on the podcast and any suggestions of the types of content you’d like to see covered.     This podcast is intended for investment professionals, and shouldn’t be shared with a non-professional audience. This podcast should not be taken as an invitation to deal in Legal & General investments. Any views expressed during this recording belong to the individuals and are based on market conditions at the time of recording, and do not reflect the views of Legal & General Investment Management. Legal & General Investment Management is authorised and regulated by the Financial Conduct Authority. Legal & General Investment Management, One Coleman Street, London, EC2R 5AA. Register in England no. 2091894. All rights reserved. No part of this audio may be reproduced in whole or in part without the prior written consent of Legal & General Investment Management.

Question: Are people at parties talking to you about stocks?    If the answer is ‘yes’ then (1) you could be going to the wrong sorts of parties or, more likely, (2) this could be a qualitative indicator that the economy is in ‘bubble’ territory.   This episode looks at the ways investors can use quantitative and qualitative indicators to try and forecast the next economic recession. After a valiant attempt to explain the economic cycle in just one sentence, Emiel van den Heiligenberg, Head of Asset Allocation, discusses why the triggers of the next downturn will be different and why cycle dynamics means that resilient portfolio construction is more important than ever.   Also joining the podcast is resident Yogi Berra expert and Head of Retail Multi-Asset Funds, Justin Onuekwusi, on how he integrates these indicators and behavioural economics into his portfolio strategy and how the market is ‘like déjà vu all over again’.   To find out more about his eponymous ‘Heiligenberg Index’, read Emiel’s latest blog here: https://macromatters.lgim.com/categories/strategy/i-have-a-fascination-for-market-bubbles/?cid=lgimtalks    ·         Emiel van den Heiligenberg, Head of Asset Allocation ·         Justin Onuekwusi, Head of Retail Multi-Asset Funds ·         Eliza Grimond, Content Manager   We want to hear from you! Email us at mark.chappel@lgim.com with your thoughts on the podcast and any suggestions of the types of content you’d like to see covered.     This podcast is intended for investment professionals, and shouldn’t be shared with a non-professional audience. This podcast should not be taken as an invitation to deal in Legal & General investments. Any views expressed during this recording belong to the individuals and are based on market conditions at the time of recording, and do not reflect the views of Legal & General Investment Management. Legal & General Investment Management is authorised and regulated by the Financial Conduct Authority. Legal & General Investment Management, One Coleman Street, London, EC2R 5AA. Register in England no. 2091894. All rights reserved. No part of this audio may be reproduced in whole or in part without the prior written consent of Legal & General Investment Management.

How will the FCA clarification that environmental, social and governance (or ESG) considerations are “financially material” risks affect the IGC’s approach to scheme oversight?  Daniel Godfrey, LGIM IGC member and former chief executive of the Investment Association, discusses what the IGC’s expanded powers mean, what LGIM’s approach to ESG integration means for pensions, and future risks and opportunities. Simon Chinnery, Head of DC Client Solutions, explains what is top of mind for his clients, and what LGIM is doing to help.

The target absolute return sector has been unloved to say the least. With the offer of ‘investment nirvana’, as Square Mile’s Richard Romer-Lee puts it, these funds look to reduce volatility and still deliver performance in difficult markets.   In this conversation, I sat down with Richard and LGIM’s own Head of UK Retail Distribution, James Crossley, to discuss whether this is a ‘genre, not a sector’, the top concerns he’s hearing from advisers and wealth managers, and how communication and transparency are crucial in managing investors’ risk and return expectations.  This episode was recorded at the London Stock Exchange where Richard had just hosted a live webinar featuring a panel of industry experts on diversification, risk management and the role of alternatives in your portfolios.  You can watch the whole webinar here: https://event.on24.com/wcc/r/1990531/6AECE2D7A856E8A1ECEC782CF537ED32?partnerref=LGIMTalksDiversification     Richard Romer-Lee, Managing Director, Square Mile James Crossley, Head of UK Retail Sales, LGIM Mark Chappel, Senior Investment Writer, LGIM   We want to hear from you! Email us at mark.chappel@lgim.com with your thoughts on the podcast and any suggestions of the types of content you’d like to see covered. This podcast is intended for investment professionals, and shouldn’t be shared with a non-professional audience. This podcast should not be taken as an invitation to deal in Legal & General investments. Any views expressed during this recording belong to the individuals and are based on market conditions at the time of recording, and do not reflect the views of Legal & General Investment Management. Legal & General Investment Management is authorised and regulated by the Financial Conduct Authority. Legal & General Investment Management, One Coleman Street, London, EC2R 5AA. Register in England no. 2091894. All rights reserved. No part of this audio may be reproduced in whole or in part without the prior written consent of Legal & General Investment Management.  

Working in her father’s London clothes shop taught Honor two things: that she loved meeting people from all over the world, and that she also loved to sell. In her time in sales teams over her career, she has sought to surround herself with a talented team with great culture – a key combination which helps push everyone to perform to the best of their ability.  In this episode of In Conversation With, we talk about the pain points for so many of her clients (regulation) and how no industry is immune to disruption (especially ours). In addition to her role, Honor also helped set up the Legal & General Inclusion Team which includes a focus on all areas of inclusion as well as providing support for those who look after both young children and ageing relatives – the ‘care sandwich’.  With a black belt in karate and a dream to return to Japan, this episode travels the world of Honor Solomon and what brought her to asset management.   Honor Solomon, Head of Retail, EMEA Mark Chappel, Senior Investment Writer   We want to hear from you! Email us at mark.chappel@lgim.com with your thoughts on the podcast and any suggestions of the types of content you’d like to see covered. This podcast is intended for investment professionals, and shouldn’t be shared with a non-professional audience. This podcast should not be taken as an invitation to deal in Legal & General investments. Any views expressed during this recording belong to the individuals and are based on market conditions at the time of recording, and do not reflect the views of Legal & General Investment Management. Legal & General Investment Management is authorised and regulated by the Financial Conduct Authority. Legal & General Investment Management, One Coleman Street, London, EC2R 5AA. Register in England no. 2091894. All rights reserved. No part of this audio may be reproduced in whole or in part without the prior written consent of Legal & General Investment Management.

Good governance is crucial to all boards, whether they oversee a FTSE 100 multinational, a multi-billion pound pension scheme or a national charity. There is no one-size-fits-all approach to how boards should be run but through Sacha and his team’s extensive experience in corporate engagement, they’ve learned that there are plenty of ways to evolve and enhance effectiveness.  We know that pressures from executives, stakeholders, as well as the day-to-day oversight of the company or scheme, the role of a non-executive board member has never been more demanding. The increase in regulation and complexity of modern defined benefit and defined contribution schemes has concurrently increased the workload of pension trustees.  This week’s episode looks at some of the best practices the Corporate Governance team have seen in place and the key areas which could help boards manage their many responsibilities. Read Sacha’s full article “Board effectiveness: Lessons from companies to trustees” here: http://www.lgim.com/uk/en/insights/our-thinking/client-solutions/?cid=lgimtalks   Sacha Sadan, Director of Corporate Governance, LGIM Mark Chappel, Senior Investment Writer  We want to hear from you! Email us at mark.chappel@lgim.com with your thoughts on the podcast and any suggestions of the types of content you’d like to see covered. This podcast is intended for investment professionals, and shouldn’t be shared with a non-professional audience. This podcast should not be taken as an invitation to deal in Legal & General investments. Any views expressed during this recording belong to the individuals and are based on market conditions at the time of recording, and do not reflect the views of Legal & General Investment Management. Legal & General Investment Management is authorised and regulated by the Financial Conduct Authority. Legal & General Investment Management, One Coleman Street, London, EC2R 5AA. Register in England no. 2091894. All rights reserved. No part of this audio may be reproduced in whole or in part without the prior written consent of Legal & General Investment Management.