Thursday 24 June 2021

Day 3 is built around the needs of Professional Adviser and Investment Week readers, including financial advisers, wealth managers and fund selectors.

Registered delegates will get access to the entire Festival so please do feel free to take a look at all of the agendas. While we hope you will be able to attend as many sessions as possible, we understand that you are busy professionals so you are welcome to attend as much as time allows. The platform we are using to host the digital event allows you to easily log in and out of the event.

Festival welcome

Opening welcome and interview remarks with Peter Harrison, Chief Executive, Schroders.

Exploring latest trends in the European ESG fund landscape

ESG funds can no longer be seen as a niche area of the European funds landscape. Record ESG fund flows, assets, and product development activity, combined with an ambitious regulatory agenda to address climate change all herald a new era for sustainable investing in Europe. This talk will examine the continued growth in inflows, assets, and the number of sustainable funds available to European institutional and retail investors. Additionally, Bioy will discuss how SFDR is re-shaping the landscape and share the latest statistics on Article 8 and 9 funds.

Actual ESG: data illuminates, but only judgement solves problems

Actual investment is not about stockmarkets and share prices, it is the art of deploying long-term capital to create wealth in the real world. But wealth creation isn’t real if it slowly destroys the environmental and social fabric of society at the expense of future generations. Some of the greatest growth opportunities in coming decades will therefore be amongst those companies that are doing most to tackle our biggest challenges. This process of disruption and change is judgemental and can’t be captured by backwards looking ESG metrics. In fact, using such an approach may be a dangerous distraction from the overarching need to change real world behaviours.

  • Responsible investing is not primarily about simple exclusions or portfolio tilts.
  • The real world conduct of companies matters far more than sweeping rules. Resource-intensive engagement is key.
  • ESG isn’t just about risk, it guides us to our future great growth opportunities
What sustainable investing tells us about the future

The last two decades have shown that integrating sustainability into stock selection can enhance investment returns. In this session, Harriet Parker will discuss what the development over this period tells us about successful sustainable investing today, the key sustainable themes of the next two decades, what the world will look like in 20 years’ time and what this means for investors now.

Stewardship comes of age

Stewardship has become one of the key buzzwords in ESG, and with the UK’s new Stewardship Code this country has put itself at the forefront of international practice. But does engaging companies really make a difference – or if you’re serious about ESG, is divestment the only credible option? Vicki Bakhshi from BMO Global Asset Management will talk about what good quality engagement looks like - and what options asset managers have if it’s not having the desired impact.

In conversation with: The future for EdenTree and responsible and sustainable investing

EdenTree's new CEO and CIO come together to discuss the future of their business after 30 years leading and pioneering in this market. They will also discuss how they see the landscape of responsible and sustainable investment developing over the coming years.

Bigger, bolder, more beautiful

As asset managers, we have a responsibility to help the world transition to a more sustainable future. In order to make a significant positive impact, there needs to be engagement with carbon-intensive sectors and low ESG-scoring corporates in order to assist them in improving their corporate practises. This is more impactful coming from a bigger asset manager. In this session, we will explain the benefits of our inclusionary approach to sustainable investing.

Innovating and being bolder, will help to unlock opportunities for clients & for society as a whole:

  • Historically Emerging Market Debt has been challenging to access in a sustainable way, we will discuss how it has recently become the epicentre of ESG improvement and climate transition and how we are leaders in this space
  • Biodiversity is vital in the fight against climate change; investing in Natural Capital is a way to promote this. We will discuss the reasons why we are the first large scale asset manager aiming to make natural capital a mainstream asset class.

We will discuss why in this space you need to be bigger and bolder in order to make the world more beautiful.

Investing with impact through global small & midcaps: big may be beautiful, but so is small!

Big tech, big oil, big pharma; the stock markets have always had a keen eye for the larger sizes. We say there is beauty and value in small and midcaps, too. Not just from a risk and return perspective, but – equally important – also from an impact perspective. Through the lens of our transition theme Sustainable Food and Agriculture, Dirk Hoozemans will describe our unique and thorough impact selection process for these small and midcap impact investments.

Day 3 Professional Adviser Stream

Uncovering client interests and priorities as they seek to do the right thing

Overview of developments driving sustainable investing, client levels of intent and motivation, thematic trends, and opportunities that enable investors to do good.

Demystifying sustainability, incorporating climate change in your asset allocation and evidencing your positive impact on the world

Sustainability - meeting the needs of the present without compromising the ability of future generations to meet their own needs – United Nations. During this session we will provide some thoughts on what Sustainability really means and how to think about a world that invests more sustainably. We will unpack Climate change and how this has added new dimension to investing and that this needs to be at the forefront of your Portfolio Construction. We will discuss how to incorporate Climate Change assumptions into your Asset Class forecasts, ultimately leading to a more Sustainable Strategic Asset Allocation, and lastly, we will provide some thoughts on how to evidence the positive impact investors are making by investing more sustainably.

Making sense of responsible investing. What kind of investor is your client?
  • Demystifying the terminology being used to provide a framework within which to identify and meet clients’ needs and preferences
  • Describing the various approaches available, what they do (and don’t) seek to achieve
  • Providing ideas for advisers on how to have the conversation about responsible investing with their clients and what they should look for when choosing investments for them
Why invest in the energy transition?

This session explains the key drivers behind the rapid rise of Clean Energy and the investment opportunities this creates:

  • Public awareness and desire to change
  • Governments including the EU, China, Japan, UK and the US under President Biden are taking decisive action on both the climate emergency and air pollution
  • Complete transformation of energy landscape. Wind and solar are now the cheapest sources of electricity generation, even without subsidy
  • Complete transformation of transport industry: e-mobility and autonomous driving
  • New manufacturing methods, with more software and A.I.
Green Infrastructure – Long term opportunities and how to find them

The focus on green infrastructure intensified in 2020. There is a strong economic argument for addressing urgent climate and sustainability issues through investment. Governments have committed to spending substantial amounts to meet the climate crisis over the coming decades. This is set to generate substantial investment opportunities, some less obvious that others.

  • What does this mean for advisers, their clients and their investments?
  • Where will the best opportunities be – green energy, the global transport fleet, or a new innovation?
  • How do you know if they are the right opportunities for your clients?
  • Why it makes business sense and in your clients’ best interest to take a long-term view
Panel discussion: How are advisers meeting growing client demand for sustainable funds and integrating ESG into their investment approaches?

Sharing best practice ideas about what's worked when approaching sustainable investment, identifying opportunities and meeting client needs.

  • How can advisers cut through the jargon to clearly articulate the business case for ESG investment?
  • Overcoming challenges of greenwashing and measuring and demonstrating impact 
  • Matching sustainability with client objectives 
  • Approaches for integrating ESG within your business

Day 3 Investment Week Stream

Aligning ESG outcomes with attractive financial returns in Fixed Income
  • An effective approach to delivering ESG integration and the foundations required to manage dedicated ESG solutions
  • Global Corporate Bond Sustainable and Responsible Investment fund: A solution providing investors the ability to deliver an enhanced ESG outcome from a traditional asset class allocation, which complements the ability to deliver attractive financial returns
Listed infrastructure is leading and winning the war on climate change

Climate change is the challenge of our generation and listed infrastructure is leading the way in carbon reduction. The fossil fuel-to-renewables energy transition will accelerate in the 2020s,enabling electrification and decarbonisation of transportation in the 2030s and cost effective hydrogen in the 2040s. Today, Portfolio Manager Rebecca Myatt reports from the front line of this war on climate change. She will provide a brief history of listed infrastructure’s carbon reduction achievements, next steps and the clean energy pathway to victory.

Climate Change, a multi-decade investment opportunity

The World Bank expects $4 trillion of investment over the next 15 years in the effort to restrict the global rise in the post-industrial temperature to well below 2⁰C. By investing in a climate solutions strategy, you become part of the solution, and part of the global transition to a low-carbon economy.

Opportunities to invest in this growth mega-trend range from the obvious, such as renewable energies, recycling, and 'green' building materials, to less obvious, such as virtualisation software, and enzymes which improve energy efficiency.

But how to mitigate and adapt to climate change? How can responsible investors address the entire value chain? Is the ‘ESG bubble’ a myth or a reality?

The New Normal – Planet, People and Profit

In this time of crisis, it has never been so important to consider investing for Planet, People and Profit. For decades companies have externalised broader stakeholder costs, but increasingly investors are aligning capital to those companies who are leading the transition to a more sustainable world economy. Active management of these issues provides a key investment advantage as such strategies are better positioned to deliver attractive returns over the long term. Abbie Llewellyn-Waters (Portfolio Manager of Jupiter’s Global Sustainable Equities strategy) will explore how investing for all stakeholders can align clients to a low carbon fund that has social equality at the heart of its investment process.

How to select the right ESG portfolio for your clients

With ESG factors continuing to drive a growing number of investor choices, easy-to-understand ESG solutions are a must-have for today’s adviser. In this session, Morningstar Investment Management CIO for the EMEA region, Dan Kemp, explores the key challenges and considerations when selecting and ESG solution. Dan will focus on how to determine the ‘ESG-ness’ of an investment, discuss the different approaches to ESG and highlight some key features to look for when selecting the right solution for you clients.

Closing Remarks