Room151 brought together four investment leads from Border to Coast, LPPI, LGPS Central and London CIV to take stock of a rapidly changing market environment and examine their outlook for the new year. 
Senior business journalist Chiyo Robertson sat down with Gordon Ross, CIO at LGPS Central, Richard Tomlinson, CIO at LPPI, Joe McDonnell, CIO at Border to Coast and Rob Treich, head of public markets at London CIV to investigate how their pools plan to respond to rising rates and the needs to manage cashflows and income amid higher inflation.
Ross kicked off the debate by highlighting that the growing importance of cashflow management for the LGPS has led to increased demand for fixed income among partner funds.
This trend is also resonates with London CIV, which juggles the demands of 32 different partner funds, the pool is currently in the process of designing an income investing product, Treich hinted.
While McDonnell acknowledged that higher rates required a fundamental rethinking of asset allocation strategies, Tomlinson added that this was far broader than just investing more in bonds and cash.
McDonnell also highlighted that the new environment opened up significant opportunities in core real estate. Tomlinson suggested that infrastructure could become an increasingly attractive asset class, but added that liquidity challenges over the long-term could become a challenge.
The panel was part of Room151’s annual Investment Forum at the London Stock Exchange.
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