mallowstreet University Investment Focus: Alternative Sources of Income

Speakers

• Richard Elmslie | RARE Infrastructure Co-Chief Executive Officer and Co-Chief Investment Officer

  As a founder, Co-Chief Executive and Co-Chief Investment Officer, Richard is a member of the Management and Investment Leadership Teams at RARE. As a member of the Investment Leadership Team, Richard is responsible for the governance and management of the investment team and the investment process. As a Portfolio Manager, Richard is a member of the investment committees responsible for the investment performance across all active strategies.

  Prior to founding RARE in 2006, Richard spent 19 years in the global infrastructure sector, including five years as Head of Power and Joint Head of Infrastructure at UBS Investment Bank. Highlights of Richard’s career include being part of the advisory team on the privatisation of the UK / Scottish Electricity industries, as well as joint team leader on the privatisation of major Australian airports in Sydney, Melbourne, Perth and Brisbane. Richard holds a Bachelor of Commerce from the University of New South Wales, is a member of the Institute of Chartered Accountants and is a Fellow of FINSIA.

• Jeremy Richards | M&G Investments Head of Internal Portfolio Clients

  Jeremy joined Prudential Portfolio Managers in 1983 as a member of the actuarial department. He later joined the fixed income team in 1985, and is now Head of the Internal Clients team who are responsible for managing our Life and Annuity Funds.

  Prior to this appointment, Jeremy worked on bond research, going onto manage the UK and European fixed income portfolios for insurance and pensions clients. He was also the specialist in index-linked gilts and fixed income derivatives.

  Jeremy graduated from the University of Manchester with a degree in Economics and is a Fellow of the Institute of Actuaries.

• Howard Meaney | UBS Asset Management Head of Real Estate UK, Senior Portfolio Manager UBS Triton

  Howard Meaney is the Head of Real Estate UK (RE-UK), a business which forms part of Real Estate & Private Markets within UBS Asset Management (UBS-AM). Howard is also the Senior Portfolio Manager for UBS Triton Property Fund (UBS Triton).

  Howard was appointed Head of RE-UK in April 2013. In this role, Howard manages the team responsible for the portfolio management of the flagship UK real estate fund, UBS Triton, as well as other funds and mandates for the UK-based real estate business.

  Howard originally joined UBS-AM in September 2012 as Portfolio Manager for UBS Triton, a position he retains alongside his Head of RE-UK responsibilities. As Portfolio Manager, Howard is responsible for the strategic management of UBS Triton, investment selection and asset management. Howard also manages UBS Triton‘s asset management team. Howard is a member of the RE-UK Investment Committee.

  Howard has more than 30 years’ experience in the UK real estate industry, including employment with LV= Asset Management (2007–2011) as Head of Property Investments, where he managed five UK funds with AUM of approximately GBP 750 million. Prior to this, Howard held roles with Cushman & Wakefield (1998–2007), Legal & General (1990–1998), Hillier Parker (1986–1990) and British Rail Property Board (1980–1986).

• Barry Fricke | Aberdeen Standard Investments Global Head of Private Credit - Product Strategy & Solutions

  Barry represents the private credit capabilities of the firm, working alongside the investment teams and developing new and customised investment solutions for institutional clients globally. Prior to joining Aberdeen Standard Investments in April 2017, he was an Executive Director at Goldman Sachs for eight years, based at various stages out of London and New York, advising on and managing private credit and alternative investment portfolios. He started his career at JP Morgan, working on investment strategy and portfolio construction. Barry holds an MA in Philosophy from the University of London, Birkbeck, an MSc in Electrical Engineering from the University of the Witwatersrand (Johannesburg), and a BEng in Electronic Engineering from the University of Pretoria. He is a CFA charterholder.

Program

1. 8:30 AM Registration, tea and coffee

2. 9:00 AM Welcome address and introductions

3. 9:10 AM Rotating Investment Masterclass I: RARE Infrastructure | Listed infrastructure - providing stable income in changing times

   Investors are on the hunt for alternative sources of income. Listed infrastructure can provide investors with an attractive alternative source of income. Infrastructure assets not only provide stable income streams through economic cycles but the dividends paid out should be growing and recurring over time. Infrastructure also acts as a diversifier, having lower beta and correlation to other assets. The underlying return streams of infrastructure companies (essential services, backed by hard assets with a degree of price certainty) are strongly linked to the regulatory or contractual frameworks in place, rather than typical drivers of equity and bond returns. In rising rate periods, increases can be passed through at the next regulatory reset. RARE has been managing Income focused Infrastructure strategies since 2010.

4. 9:50 AM Rotating Investment Masterclass II: UBS Asset Management | Long-term, inflation-protected cashflows accessed through Long Income UK Property

   Long income property has many characteristics that are particularly attractive to pension schemes facing short to medium-term challenges in funding their ongoing commitments. Long income property can also potentially offer a compelling risk-adjusted income premium over gilts and investment-grade corporate debt. In addition to delivering a level of income that compares very favourably with these traditional bond alternatives, the asset class can offer security, predictability and typically a high degree of inflation protection. However, not all long income property investments are equally desirable. Investors need to be mindful of the megatrends that are re-shaping the economy and focus on the sectors with potential, and also be wary of the sectors that are vulnerable in the long-term.

5. 10:30 AM Coffee, tea and networking

6. 10:55 AM Rotating Investment Masterclass III: M&G Investments | CDI – meeting your cash liabilities as they fall due

   When using physical assets to match cash liabilities, what should form part of your universe? How much accuracy is necessary for the longer dated cashflows? Do you have more appetite for perceived illiquid assets than you may think? If so, what extra returns and protections should you demand if you can give up some liquidity? What sorts of assets can provide the duration to match liabilities, the income to pay pensions and the extra returns to help close funding deficits? We look at what insurers have been doing for decades, and what UK DB schemes can do in the world of cash flow driven investing.

7. 11:35 AM Rotating Investment Masterclass IV: Aberdeen Standard | Secure income and cash flow

   Secure income strategies can be an attractive way for pension schemes to meet their growing annual cash flow needs while capturing illiquidity premia. By investing in a diverse range of private credit assets in a single fund, investors are able to access relatively uncorrelated areas of the economy in an integrated way, with more selective deployment of capital. The Secure Income and Cash Flow Portfolio will invest in secured private credit, including commercial real estate debt, infrastructure debt and private placement bonds. Relative to similarly-rated (BBB+) public corporate bonds, the portfolio should provide investors a higher yield, an improved risk profile, and access to a range of unique performance drivers.

8. 12:15 PM Lunch and networking

9. 12:45 PM End