In the final episode of series three of The Professional Investment Podcast, Charlotte Moore talks to Jesal Mistry, head of DC investments at L&G. We discuss the lessons UK pension schemes can learn from Australian supers about investing in our domestic market.
The news that Australian fund manager Macquarie would be investing in UK airports provided the spark for this discussion. In a recent trip down under, Jesal talked to supers and asset managers about how they allocate to their own market. This has been a long tradition with up to 60% of assets invested in Australia.
While asset owners could buy both public and private assets, UK public markets have been suffering in recent years with listings falling and performance faltering. This part of a broader market trend which has seen companies prefer private market financing to public flotations.
Jesal unwrapped how DC schemes should approach private market investing, using equity at the start of the members’ wealth journey and switching to debt during retirement. And within equity portfolios, risk needs to further diversified with some allocation to high growth, high risk assets like biotech and lower risk infrastructure equity.
Despite a focus on UK assets, L&G doesn’t constrain its private market assets to the UK but invests globally looking for best-in-class private asset managers to build the best portfolio for scheme members.
This episode is a vital listen for asset managers looking to understand how providers of contracted-out pensions schemes and master trusts are evolving their thinking about private asset allocation.
ABOUT THE GUEST:
Jesal Mistry – Head of DC Investments, Asset Management, L&G
Jesal leads Legal & General dedicated DC Investments Team. The Team provides DC Investment expertise to clients and their advisers, supporting with their investment strategies and ensuring that they are aware of the latest developments in DC investment at Legal & General.
Jesal joined Legal & General in June 2019 having previously worked for Hymans Robertson where he was Senior DC Investment Consultant, responsible for managing key DC Investment relationships and supporting clients with strategies designed for their members. Jesal was also responsible for managing strategic relationships with all major DC providers in the UK. Prior to that, Jesal was Head of DC Investment Consulting at Capita Employee Benefits where he was responsible for developing Capita’s DC investment proposition and advising clients. Jesal has over 17 years of DC pensions and investment experience.
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ABOUT THE HOST:
Charlotte Moore is an award-winning journalist and co-founder of Moore Squared Communications. She has spent almost two decades writing about how the UK’s largest investment organisations allocate their capital for a number of different specialist magazines including Professional Pensions, IPE and MandateWire. She started this podcast to increase understanding of how and why the UK’s £3 trillion pensions industry invests its members’ capital to provide the best possible retirement.
🔗 https://lotsmoore.co.uk/
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