... it's a matter of time
Times are in US Central Daylight Time (CDT)
The LSC schedule will be sent directly to invited asset owners by mid-October
8:45 am – 8:50 am | Opening Remarks
Louis Gagnon, President, U.S. and Canada
8:50 am – 9:00 am | Welcome and Opening
Christine Bradford, Senior Not-for-Profit Consultant
9:00 am – 9:25 am | It’s a Matter of Time: Issues, Themes and Opportunities
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Themes and Opportunities 2020 |
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Beware of inflation |
Deb Clarke, Global Head of Investment Research
Susan McDermott, US Strategic Research Director
Executive summary
| Investors need to be clear on their timeframes, prepared for more “business as unusual” and positioned for climate change — all of which requires a clear understanding of how related risks and opportunities could develop over time. In this session, we outline these themes and discuss the potential opportunities and risks investors should take into account in order to succeed over the next few years. |
9:25 am – 9:40 am | Investing in a Brighter Future: Conversations with Plan Sponsors
Facilitator:
Rachel Volynsky, Chief Investment Officer, Delegated Solutions, Canada
Panelists:
Yannick Menard, Managing Director, Pension Investments, Bank of Montreal
Roman Kosarenko, Senior Director, Pensions, George Weston Limited
Executive summary
| In this session, we check in with two of the major plan sponsors in Canada to find out how they’re responding to current challenges and opportunities and preparing for a future that is becoming increasingly difficult to predict. Specifically, how are low rates, elevated equity valuations and macro uncertainty shaping strategic allocation decisions for defined benefit and defined contribution plans with the goal of achieving meaningful replacement ratios for employees? |
9:40 am – 10:05 am | The Future of Energy
Monika Freyman, Head of Responsible Investment, Canada
Rob Bailey, Director, Climate Resilience, Marsh & McLennan Advantage, Oliver Wyman Group
Sid Vittal, Asset Class Specialist, Alternatives
Executive summary
| The UN is labelling this the “decade of delivery,” a time for economies and business to be resilient and aligned with global climate goals to build “a better and more sustainable future for all.” The timing, methodology and portfolio implications for different “climate transition” approaches are debatable, but most agree on the starting point: the energy sector. Energy fuels so much of our economy, and it’s now facing the greatest disruption. So where are the known risks, and where might the surprises lie for investors? How can we successfully connect the risks with the opportunities? A successful transition in the decade ahead will require navigating both and finding the investable solutions across asset classes. |
10:05 am – 10:15 am | A Timely Check-In
Christine Bradford, Senior Not-for-Profit Consultant
10:15 am – 10:30 am | Coffee Break and Table Topics
Grab your beverage of choice and join one of the groups below to have an informal chat on a topic that interests you.
1. Insurance Linked Strategies – A Unique Diversifying Asset Class
2. Vintage Diversification
3. Sentinel
4. Securities Lending
5. Insurance
6. DC in the U.S.
7. DC in Canada
8. DB in the US
9. DB in Canada
10. Family Offices
11. Financial Intermediaries
12. Analytic and research Tools
13. DS / Investment solutions in the US
14. DS / Investment solutions in Canada
15. Capital Market
16. Asset Allocation
17. Manager Selection
18. Portfolio Construction
19. Equities
20. Fixed Income
21. Real Estate
22. Hedge Funds
23. Private Markets
24. Emerging Markets
25. Responsible Investment
26. Investment Governance
27. Financial Wellness
28. Diversity
29. World Economic Forum – Global Systemic Trends and Transformational Investment
10:35 am – 11:05 am | A Conversation with keynote speaker, David Gregory
David Gregory, CNN Political Analyst
Interviewer:
Christine Mahoney, Wealth Leader, US
Keynote Summary
| CNN political analyst and former moderator of NBC News’ Meet the Press, David Gregory finds himself in a rare position of answering questions instead of asking them on the virtual Forum. David, who has long experience as a Washington insider, shares his views on the economic and social impact of the current political climate in the US. For instance, what does this year’s US presidential election mean for the country, its people and the rest of the world? How are the thorny social issues facing the country reshaping its national character? Does the role of the media need to evolve to suit the challenges of the time? |
11:05 am – 11:20 am | Break
Perhaps use this time to try the deskercise, participate in one of the chat groups or connect with an online participant and enjoy a video chat.
11:20 am – 11:50 am | Breakouts
Breakout 1: Value Investing – Are you Staying the Course or Finding a New Path?
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Is there a case for value? |
Facilitator:
Kelly Henson, DC Segment Leader, East Market
Panelists:
Rich Dell, DC Segment Leader, East Market
Sean Chatburn, North America Leader, Equity Boutique
Executive Summary
| Amid a backdrop of persistent low interest rates, the world has becoming increasingly focused on technological development and climate transition. While value stocks have outperformed growth stocks over the very long term, throughout the past decade, they have significantly underperformed. In this breakout, we ask whether you believe value investing still has a place in your portfolio, and we share our perspective. In short, are you staying the course, or is now the time to find a new path? |
Breakout 2: Hedge Fund and Liquid Alts – Do the Merits of Diversifying Alternatives Still Stand?
Facilitator:
Jim Treanor, Alternatives Leader, U.S. and Canada
Panelists:
Derek Drummond, Portfolio Manager, State of Wisconsin Investment Board
Trent Webster, Senior Investment Officer, Strategic Investments for the State Board of Administration of Florida
Executive summary
| We are joined by representatives of two of the most sophisticated public pension plans in the US. We explore how they’ve built their respective hedge fund programs, examining how they began with different objectives but arrived at many of the same strategies. We hope to address several questions, including: Have your hedge fund program objectives been met? What lessons have you learned with emerging managers? Have you been able to identify diversified sources of alpha? Which strategies scale best? The discussion includes the changing landscape of institutional investors as the new warehousers of risk. |
Breakout 3: Dealing with the Doldrums: Fixed Income Strategies in the Lower-for-Longer Environment
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Opportunities in dislocated credit markets |
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Time to buy (high yield): revisited |
Facilitator:
Gregory Halagan, Co-Head of US Insurance
Panelists:
Nicholas Martowski, Chief Investment Officer, Magmutual
Casey Plante, Director of Investments, M Health Fairview
Executive Summary
| Low interest rates are not a new challenge facing investors, but recent market movements and global central bank forward guidance suggest that these challenges will be with us for the foreseeable future. Our panelists aim to help by illustrating what actions they have taken to meet the challenges caused by today’s low-yield market environment. Key questions we hope to provide guidance on include whether the role of fixed income has changed and how to balance the need for more yield without taking unnecessary risk. In addition, the panel explores current market opportunities and risks while tackling whether investors should increasingly target private debt allocations as a way to acquire risk premium. |
Breakout 4: The Implications for Real Estate Investing in a Post COVID-19 World
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US private real estate - implications and opportunities amid COVID-19 |
Facilitator:
Allison Yager, Global Alternatives Leader, Real Estate
Panelists:
Bill Grubbs, Managing Director, Invesco
Jim Mattingly, Director of Real Assets, Indiana Public Retirement System
Executive summary
| The outbreak of COVID-19 has rapidly evolved into a major world economic downturn but could also lead to long-term changes for real estate markets. This breakout session explores the effects COVID-19 will have on real estate investing in the next few years. Which property sectors will experience the greatest impact? Which the most benefit? In addition, since opportunities typically follow distress, what real estate investing opportunities will emerge? |
Breakout 5: Private Equity – Is Infinite Capacity Possible in a Post COVID-19 World?
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Impact of COVID-19 on private equity co-investments |
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Co-investments - a primer |
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Impact on private equity: Searching for opportunities in a crisis |
Facilitator:
Raelan Lambert, Global Alternatives Leader
Panelists:
Amy Lesch, Partner, Client and Partner Group, KKR
Leslie Lenzo, Chief Investment Officer, Advocate Aurora Health
Executive Summary
| Infinite capacity to private equity investment opportunities was not available pre-COVID, and the continuation of a low-interest-rate environment is generating increasing LP demand for strong returns from their private equity portfolios. While capacity constraints to high-quality managers will continue post-COVID, GPs are finding ways to engage with LPs to meet ever-increasing demand. Bespoke separately managed accounts, evergreen opportunities and co-investments are some of these methods. Secondaries are another means by which LPs can benefit from portfolio rebalancing and potentially gain access to capacity-constrained opportunities. In this panel, our GP and LP experts explore how the private equity industry and opportunity set is evolving post-COVID and provide insights on how they are continuing to deploy capital at scale in an increasingly competitive environment. |
12:00 pm – 12:50 pm | The (Hypothetical) World Pension Fund: Investment Ideas in Practice
CIO: Jay Love, U.S. Investment Consulting Leader
Sub-committee chairs:
Public Equity
Nicole Delahanty, Senior Investment Consultant
Private Equity
Texas Hemmaplardh, Co-Head of US, Endowments
Fixed Income
Chris Tschida, Co-Head of US Insurance
Real Estate
David Axelson, Senior Investment Consultant
Hedge Funds
Chris Grimm, Co-Head of US Healthcare
Executive summary
| The investment environment is rapidly evolving as risks and opportunities present themselves. Future returns are generally expected to be lower than in the past, and investors need to consider how to achieve their goals while still managing risks. There are many approaches to improving outcomes, requiring thoughtful consideration of their fit with an organization’s objectives and risk tolerance. In this session, you serve on the investment committee of the World Pension Fund, a hypothetical retirement plan that provides a steady retirement income to millions of current and future retirees. As part of the committee, you consider the recommendations of the Fund’s investment advisors for potential changes to improve the long-term results of the Fund’s investments. This interactive session includes an audience polling following each subcommittee recommendation before the final portfolio is unveiled. |
12:50 pm – 01:00 pm | Final Remarks
Rich Nuzum, President, Wealth
01:00 pm – 01:20 pm | Optional: Meet the Speakers
For information about the event, please contact:
Members of some professional bodies may be able to claim continuing professional development credits for attending Mercer's Global Investment Forums.
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