mallowstreet University Dinner: What Next for UK DB Schemes as Normality Resumes?

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BMO Global Asset Management

Low Dependency Portfolios - Integrating Credit and LDI

Most pension schemes are on a journey towards self-sufficiency or buy-in/out. At the same time, The Pensions Regulator is pushing schemes to move towards a low dependency portfolio as they mature. As a result, most pension schemes’ longer term investment objectives combine high hedge ratios with an increased allocation to credit. Both long dated cashflow matching and short dated credit can be used. We will discuss the appropriateness of each for different pension scheme circumstances. Furthermore, we will explore how to integrate the two to ensure maximum hedge accuracy, collateral efficiency, and governance efficiency.

About BMO Globl Asset Management

At BMO Global Asset Management, we believe that institutional clients need an investment partner that truly understands the environment in which they operate and how it is evolving.

We have been managing assets on behalf of local governments, pension funds, corporate pension funds, insurance companies and charities for many decades.

BMO Global Asset Management offers all the stability and resource of a business with £227 billion under management (31 December 2020) and is part of the BMO Financial Group, founded in 1817 as the Bank of Montreal (BMO), which now has over CAD$949 billion of assets and support over 12 million customers (as at 31 October 2020).

mallowstreet University Dinner: What Next for UK DB Schemes as Normality Resumes?

COVID-19, Brexit and other global events have led to supply and demand imbalances, and some economic signals point to structurally higher inflation on the way. Added to this, the Bank of England recently offered its first detailed plan of how it plans to get rid of almost £900bn of government bonds on its balance sheet.

Over dinner, BMO Global Asset Management will examine what this may mean for LDI investors, including the impact on asset classes such as corporate bonds, and also take a look at the UK’s new green gilt initiative to determine if, and how, it may fit into LDI portfolios.

This evening session is accredited for CPD points by the Pensions Management Institute (PMI) and is exclusively for pension fund decision makers and their advisers.

Speakers

James Edwards
Director, Institutional Business
James is a Director within the UK Institutional team with a particular focus on Corporate DB pension schemes. Prior to joining BMO Global Asset Management in May 2018, James worked at BlackRock for 10 years as both an Institutional Client Director and a Fixed Income Product Specialist, with a focus on global credit. James is a CFA Charterholder.
Simon Bentley
Managing Director and Head of UK Client Portfolio Management
Simon is responsible for the investment outcome we deliver to a range of our Investment Solutions clients in the UK and Ireland. Simon is a long-standing and experienced member of our Investment Solutions team, having joined the business just under 11 years ago. He has 23 years of investment experience, specifically focussing on LDI and fixed income portfolios for over 15 of those. He has worked with many large pension schemes to implement a range of LDI, fixed income and derivative based solutions and has previously held roles at Insight Investment, UBS, Newton and Lazard Asset Management. Simon is an engineer by background, having studied Product Design and Manufacture (BEng) at Loughborough University. As well as spending time with his young family, Simon is a keen petrolhead, and enjoys keeping fit, skiing and watching rugby in his free time.
Nicola Thorpe
Director, Client Portfolio Manager, Fixed Income EMEA
Nicola is a Client Portfolio Manager for Fixed Income in EMEA with responsibility for corporate bond strategies, specifically as they relate to LDI clients. After joining BMO Global Asset Management in 2010, Nicola has spent the majority of her time within the Liability Driven Investment team. She has held a number of roles, including Business Manager, Product Specialist and Portfolio Manager and most recently spent 2 years in Toronto where she developed the Canadian LDI capability for BMO. Nicola has a BCom degree in Finance and a post-graduate BCom (Hons) degree in Investment Management, both from the University of Johannesburg.

Program

6:30 PM Guest arrival and welcome drinks
6:55 PM Seated for dinner
7:00 PM Dinner served followed by presentation and discussion

Join the team from BMO Global Asset Management over dinner, who will examine what this may mean for LDI investors, including the impact on asset classes such as corporate bonds, and also take a look at the UK’s new green gilt initiative to determine if, and how, it may fit into LDI portfolios.
9:00 PM End

mallowstreet University Dinner: What Next for UK DB Schemes as Normality Resumes?

Speakers

Program

6:30 PM Guest arrival and welcome drinks

6:55 PM Seated for dinner

7:00 PM Dinner served followed by presentation and discussion

9:00 PM End