While private markets have substantially grown over the last few decades, this has been coupled with the continued tectonic shift towards more sustainable assets. Alternatives are uniquely positioned, to not only generate alpha for investors but also address some of the most pressing challenges our world faces today and over a longer-term horizon. They are a key player in the transition to a more resilient environment and sustainable economy.

At BlackRock, our investment conviction is that sustainability-integrated portfolios can provide better risk-adjusted returns to investors, generating portfolio growth while striving to contribute a positive impact to our planet.

Investors wishing to integrate environment, social and governance (ESG) considerations into their active credit portfolios will be keen to attend this session, where they will:

• Learn how incorporating ESG into active credit has moved beyond traditional exclusionary and backward-looking approaches
• Explore how it is possible to align your credit portfolio to a net zero climate pathway
• Understand how the UN’s Sustainable Development Goals are relevant to credit portfolios

In this session, Zoe Austin, Portfolio Manager, will explore how a portfolio of real assets can be structured to deliver attractive risk-adjusted returns and align with a net zero pathway. As we make our way, Zoe will map out how our net zero carbon philosophy of “avoid, reduce, remove” is implemented in real assets by investing across green infrastructure, sustainable real estate and nature based carbon removal solutions such as forestry.

"Making good decisions comes from experience. Experience comes from making bad decisions.” (Sara Blakely)

What can we, as individuals, do to improve our collective decision making in groups, whether around board tables, within offices, or even in our personal lives? The fact is that human biases can lead to sub-optimal aggregate decision making - so understanding key aspects of social psychology is an important defence against what is often referred to as “Groupthink.”

Psychology and behavioural science provide valuable insights and a strong competitive advantage to those firms and individuals who embrace them. In this talk, Paul will cover a range of topics from behavioural science, including conformity, cognitive diversity, and how to avoid hindsight bias - and why every business executive should watch the movie Twelve Angry Men.

On the way expect plenty of tips and tricks on how to understand your own mind better; and how to challenge yourselves and others in a way that creates a more constructive decision-making environment.

Smart Pension’s very own James Lawrence will explore a case study on how a pension scheme can go beyond ESG investing.

This session will address:

• How a £2bn+ scheme has approached this?
• Where did they get it right?
• What lessons have been learnt for one of the fastest-growing companies in the retirement savings marketplace?

The events of recent years (and, more so in recent weeks) magnify the desire of investors for greater certainty of investment returns, robust liability hedging portfolios and a cashflow management process that runs like clockwork. The financial market reaction to the Mini Budget has provided a further stress test to the robustness of CDI strategies. With the shift in investment landscape, can building portfolios of cashflow generative assets keep us afloat in rough economic waters?

This session will address:

• What are the key features of CDI strategies and why are they an appropriate part of a low dependency strategy on the road to buy-out?
• How can CDI strategies produce short- and long-term solutions for an unpredictable market?
• What are the challenges for cashflow management that are brought about by a volatile market and how can a CDI better prepare investors to navigator market turmoil? 

Many schemes have used Liability-Driven Investment (LDI) to successfully manage funding level volatility and build strong funding positions over many years. But recent extreme market volatility has highlighted some of the operational challenges that can come with any investment involving leverage.

Most schemes that we’re involved with have shored up collateral at LDI managers over recent weeks in order to protect high hedging ratios of liability movements. Others will have seen hedging levels reduced, and at time of writing now be looking at larger funding deficits (as gilt prices have recovered).

With the immediate re-collateralisation process now largely complete, it is time to consider key longer-term and strategic questions facing the industry. Firstly, how can some LDI structures be improved to provide additional robustness. Some people now believe leverage in LDI should be curtailed and/or there needs to be more supervision or different regulation of LDI managers. Others believe the DWP’s draft new Funding and Investment Regulations and scheduled new TPR Defined Benefit Funding Code may need to be revisited, including some questioning whether liabilities should still be valued on a gilts basis. It has also been suggested that both lay and professional trustees need to improve their understanding of LDI and the risks that come with leverage.

This session will address:

• A brief recap of what LDI is and why pension schemes use it
• What caused the LDI crisis, and what can we learn from the past few weeks?
• What position do typical schemes now find themselves in, and what do they need to do now?
• What will LDI 2.0 look like, to provide additional robustness in volatile times?