Room151 got together the CIO at West Yorkshire pension fund, London CIV’s head of public markets and investors for four of the pool’s partner funds alongside two bond fund managers for MFS Investment Management and Aegon Asset Management to discuss if bonds are making a comeback.
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With interest rates rising at the fastest pace in more than a decade and inflation expected to stabilise, bonds are projected to make a comeback.
LGPS pools have just completed their triennial valuation and are now reconsidering the role of fixed income in their strategic asset allocation.
But with the prospect of rising rates come increased default and liquidity risks, which remain high on investors’ agendas. The panel also discussed aftermath of the LDI crisis, the importance of geographic and diversification and the impact of growing monetary policy divergence among major developed market bond issuers.
Participants
- Tim Mpofu, head of pensions & treasury Haringey Council
- Nemashe Sivayogan, head of treasury of pensions LB Merton
- Nigel Mascarenhas, head of treasury & financial services LB Camden
- Rob Treich, head of public markets London CIV
- Leandros Kalisperas, CIO West Yorkshire Pension Fund
- Sandra Holdsworth, head of rates Aegon Asset Management
- Alexandra Ross, institutional relationship manager Aegon Asset Management
- Benoit Anne, managing director investment solutions MFS Investment Management
- Kelly Tran, managing director, institutional MFS Investment Management
You can read the full coverage of the session here.
