Institute of Retirement Funds Africa
DESPITE the breakneck pace of today’s world, Old Mutual’s Director of Investments, Hywel George, believes it’s those with a long-term approach that reap rewards.
He says, “The last decade has tested market participants’ ability to withstand short-term volatility while navigating long-term structural changes. We live in a world where the pace of change in politics, technology and social dynamics can seem astounding.
“We anticipate a longterm trend towards increasing mechanisation and exponential growth in computing power. Will such automation positively or negatively impact economic growth, well-being and employment levels?
“The implications are not yet fully understood but plotting a route forward in an uncertain world is helped by having a secure long-term view.
“For example, our MacroSolutions boutique tracks asset class returns annually with research spanning 87-years. However, being a long-term investor is not just about being able to understand long-term trends. returns is no longer one of idle contemplation.”
In June, Swiss RE announced that by the end of the year, all of its US$130bn global portfolio will be shifted to ESG benchmarks.
George adds, “Within our business Old Mutual Customised Solutions has led the domestic market with its family of ESG indices.
“These are low tracking error products designed to offer market returns with a measurable ESG delta to the benchmark.
“In simple terms, such bestin-class strategies offer a very low cost option on the longterm mispricing of ESG risks.
“For asset owners with long-term liability horizons it is becoming increasingly clear that pursuing short-term returns in a manner that potentially undermines long-term system stability is not a prudent course of action."
Robert Lewenson, Head of ESG Engagement: Old Mutual Investment Group, says,
“To act as responsible stewards of assets, we ensure that the management teams of investee companies are accountable for company performance and conduct.
“We implement our stewardship activities both in terms of proxy voting and engagement with listed investee companies, locally and internationally, and with investee companies in unlisted markets.
“We see this as an effective way to meet our commitment to protect investor interests with regards to the way companies manage their ESG risks and opportunities.
“We publicly disclose the outcomes of our responsible ownership activities on a regular basis and our latest report can be accessed on our website.”