On 1 November 2017, Investec's Investment Institute hosted its 4th annual London Forum at Altitude 360, Millbank Tower, London.
Ten years on since the start of the global financial crisis (“GFC”), we discussed how the UK market has evolved. In particular, we asked how the City’s operating environment at the heart of Western finance has changed as populism continues to polarise the politics of democracies. This turmoil is happening even as the economic renaissance of the East continues apace. Has the “Old Normal” of global finance been shattered? Have the conventional wisdoms of the pre-GFC era that the West help define, started to unravel? If so, what has begun to replace them? What does this mean for asset owners in terms of risks? Indeed are the risk anchors of the Western core no longer as “risk-free” as they once were? We discussed Brexit in relation to the City of London’s future as a leading financial centre before looking ahead to the next 10 to 20 years. What are the opportunities and challenges we all face as both market participants and responsible members of society? And how can we incorporate lessons learned to re-orient capital sustainably for the long term?
These questions and more underpinned the discussions that took place at the London Forum 2017. You can find a full summary of the event, including the imagery created on the day, here.
Hendrik du Toit
Chief Executive Officer, Investec Asset Management
Anton Du Plooy, 4FactorTM Equity Analyst, Information Technology, interviews Martin Ford, Author of the Rise of the Robots: Technology and the Threat of a Jobless Future, winner of the FT and McKinsey Business Book of the Year Award 2015. They discuss technology and the threat of a jobless future.
Lunch address: Brexit and London’s future as a leading financial centre
Introduction & moderator: Hendrik du Toit, Chief Executive Officer, Investec Asset Management
Navigating global political uncertainty and its impact on markets
From ideas to action: Practical ways to re-orient investment portfolios to the long term
ESG: the next generation of investing
The future is here: The rise of robotics, artificial intelligence and implications for investors
David Aird, Managing Director, UK Client Group, Investec Asset Management
David is managing director of the UK Client Group at Investec Asset Management, responsible for retail and institutional business in the UK and Ireland. David initially joined Investec Asset Management as sales director for UK & Europe in 2000.
Prior to Investec Asset Management, David worked at Gartmore Asset Management with responsibility for capital raising for their hedge fund business. Previously, David was head of institutional pooled sales in the UK and offshore areas for Fleming Investment Management.
David started his career as a Chartered Accountant after graduating from Nottingham City University with a degree in Accounting and Finance.
Hendrik du Toit is Chief Executive Officer at Investec Asset Management and an executive director of Investec plc and Investec Limited. Hendrik joined the Investec Group in 1991 as founding member of Investec Asset Management. Under his stewardship, Investec Asset Management grew from a small South African start-up to an international specialist asset management firm entrusted with over £95.6 billion* of client assets.
Hendrik has served on the Leadership Council of the Sustainable Development Solutions Network, a global initiative for the United Nations since 2014. In 2016 he became a Commissioner on the Business and Sustainable Development Commission. In 2016 he was appointed as a non-executive director of Naspers Limited.
Hendrik holds an MPhil in Economics and Politics of Development from Cambridge University, as well as an MCom in Economics and International Finance (cum laude), BCom in Economics honours degree (cum laude) and a BCom (Law) from Stellenbosch University.
* As at 30 June 2017
Katharine Braddick is Director General for Financial Services at the Treasury, leading on all aspects of policy for financial services and financial stability.
Katharine joined the Treasury in 2014 as Director, Financial Services (International), before which, she had spent a decade in financial services regulation at the FSA and, latterly, the Bank of England where she was Director of Prudential Policy.
Katharine began her career as a fast stream civil service at the Department of the Environment and has also worked at the Association of British Insurers.
Sir Ivan Rogers was the UK representative to the EU. He joined the EU in 2013 as a senior negotiator with other Member States and European institutions. He took part in heads of State and Government meetings (European Council) alongside the Prime Minister.
Prior to this Ivan was the Chief EU adviser to the Prime Minister heading up the European and Global Issues Secretariat, Cabinet Office. Ivan was also Head of UK and Ireland Government Banking at Barclays Capital. Before this he was the non-executive director of the UK's deposit guarantee scheme, in the period following the financial crisis. He has also held positions as Senior Government Banker, Citigroup UK (2006 – 2010) Principal Private and positions within HM Treasury.
Ivan is a graduate of Ballion College, Oxford and École Normale Supérieure, Paris.
Tina Fordham is Managing Director and Chief Global Political Analyst at Citi, the first to hold this position. Named a “Changemaker” in the London Evening Standard’s 2016 Progress 1000 list, as well as three times in the “Top 100 Most Influential Women in Finance", Fordham joined Citi in 2003, where she advises corporate boards and institutional investors on the implications of macro political, security and socio-economic factors. In 2016, Fordham was appointed to the UN's first High-Level Panel on Women's Economic Empowerment, which also included IMF president Christine Lagarde. She serves on the International Advisory Boards of the think tank Carnegie Europe and the School of International and Public Affairs at Columbia University, where she earned her Masters degree in International Affairs. Previously, she served as senior advisor in the UK Prime Minister's Strategy Unit and head of global political risk at Eurasia Group, where she started the firm's financial markets research business in 1999. She is a frequent commentator in the international press. Fordham lives in London with her two daughters.
John is currently responsible for the Global Client Group at Investec Asset Management. In this role he is responsible for all of the firm’s client related activity including sales, client management and marketing. John is a member of the Investec Asset Management global executive committee. He assumed this role in February 2009 having previously served as the managing director of Investec Asset Management’s operation in Africa. Previously, John served as the managing director, Investec Asset Management South Africa since 2004.
John joined the company as the head of personal investments, following the Investec acquisition of Fedsure in March 2001. John joined Fedsure in 1998 and worked as an advisor to the chief executive officer on strategy and group matters. In mid-2000 he moved across to manage the retail business. Prior to joining Fedsure, John worked for six years in consulting at Andersen Consulting and Bain & Co, where he gained experience in the banking, insurance, consumer retail, wholesale, technology, and transport sectors.
John graduated from the University of the Witwatersrand with a Bachelor of Commerce degree and Bachelor of Laws degree.
Ian McKinlay is the Chief Investment Officer of the Lloyds Banking Group pensions schemes, looking after assets of some £45bn across several large DB and DC schemes. As the bank holds capital against its DB liabilities the emphasis is on financial risk management through liability hedging. In the last 18 months he has built a new in-house team, and reviewed the investment strategy and governance arrangements for the schemes.
The DB schemes in particular have undergone a significant change with streamlining at both trustee and executive level, with most decisions now taken within the CIO team, within a robust framework of oversight. Rationalisation has resulted in a reduction in overall costs (including fund management) by more than 10pc.
Ian was previously the CIO at the UK Pension Protection Fund and then at Aviva Staff Pensions, during his tenure these schemes won awards for innovation in a strategy, risk management and governance.
Chris Ralph is Chief Investment Officer at St .James’s Place, the UK’s largest independent Wealth Management Company with over 500,000 clients and £65bn of assets under management. He joined in November 2009 and has worked in financial markets for more than thirty years.
As well as sitting on the Investment Committee for St .James’s Place and focusing on the development of the company’s Investment Management Approach, Chris also chairs the Investment Committee in Asia and participates in the Asset Allocation Committee of our DFM subsidiary, Rowan Dartington. He also serves as a member of the Investment Committee for the Rank Foundation.
Mark is Managing Director and Global Chief Investment Officer of the Univest Company, Unilever’s internal investment group. The Univest Company oversees the investments of Unilever's pension plans in over 40 countries. Prior to joining Unilever, Mark was a Partner at Mercer and was head of the London Investment Consulting Unit. Mark has over 20 years of experience in actuarial, pensions and investment work. Whilst at Mercer he was the lead consultant to Unilever in relation to the set up and ongoing advice to Unilever's multi country asset pooling vehicles.
Mark is a Fellow of the Institute of Actuaries and a member of the 300 Club.
Clyde is Co-Head of Quality at Investec Asset Management. He is a portfolio manager with a focus on multi-asset absolute return and low volatility real return equity investing. His portfolio manager duties include our flagship Opportunity Strategy that he has run since 2003 and our equity oriented Global Franchise and Global Quality Equity Income strategies.
Clyde joined the firm in 1999, initially as an asset allocation and sector allocation strategist. Prior to Investec Asset Management, Clyde was awarded a study bursary by Sanlam where he worked for eight years, including five years in asset management. His experience in investments there included fixed income analysis and portfolio management.
Clyde graduated from the University of Cape Town with a Bachelor of Science degree in Statistics and Actuarial Science. He was awarded the Certificates in Actuarial Techniques in 1995, and Finance and Investments in 1997 by the Institute of Actuaries in London. Clyde is a CFA Charterholder.
Katherine leads the Canadian Institutional business for Investec Asset Management and is Executive Director of the Investec Investment Institute.
Katherine was formerly a director and Head of Africa for the World Economic Forum where she was responsible for CEO and government engagement at Davos and the WEF’s regional initiatives. She spent her early career in investment banking and private equity in Toronto with BMO Nesbitt Burns and CIBC Capital Markets respectively.
Katherine holds a Master’s degree in Public Administration from Harvard University’s Kennedy School of Government and a Bachelor of Commerce (Hons.) degree in Finance and Economics from the University of Victoria, Canada. Katherine is a Fellow of the inaugural class of the Finance Leaders Fellowship Program and a member of the Aspen Global Leadership Network.
Fiona has headed up the Pension Fund at Cumbria since 2010. She came to the Council with over 20 years’ experience gained across a range of financial disciplines obtained through working in a variety of industries both within the private and public sector. Specialism’s include financial management and restructuring; project management; implementation of cultural change / efficiency programs; and financial systems development.
As winner of the IPE 2016 Gold Award for Achievement of the Year & inclusion in the FN “100 most influential Women in European Finance” for her work in pensions, specifically LGPS asset pooling, she can now add pensions management to this list.
Stuart is a Trustee Director and Board member for HSBC Bank Pension Trust (UK) Limited, the £32 billion HSBC Bank Pension Trust (UK) Limited, which is responsible for the HSBC UK Defined Benefit and Defined Contribution schemes. Stuart sits on the Asset & Liability Investment Sub Committee, Nominations Sub Committee and the ESG Steering Group. Stuart is also the Head of Strategy for HSBC Global Asset Management, responsible for the strategy function and for leading transformational inorganic and organic growth opportunities. Stuart has the chief of staff role, reporting to the Global CEO and is a member of the leadership team, Global Executive Committee and Global Risk Management Committee. Stuart has been with HSBC since 2010 and was previously the Head of Institutional, UK, responsible for the business development and consultant relations teams, covering, pension, public sector, insurance and treasury client segments. Prior to joining HSBC, he worked at Insight Investment for 5 years and was responsible for their international institutional business covering client in over 20 countries. Stuart started his investment management career at Threadneedle Asset Management in the 1990's covering a variety of roles including distribution, strategy and as a fixed income analyst. Stuart graduated with a BSc honours degree in Chemistry and European Studies (German) from the University of Sussex and the University of Freiburg. He also has an MBA from London Business School, holds the Investment Management Certificate and Award in Pension Trusteeship. Stuart is also a member of the Investment Association's DC Committee.
Therese is head of global ESG at Investec Asset Management. Therese works with the various Investment teams, Client Groups and Operations teams on a wide range of ESG areas, including ESG policies, research, corporate governance and engagement. Together with the investment teams for private and listed markets Therese leads the efforts around ESG integration strategies and analysis.
She joined Investec Asset Management in 2011, initially as the head of ESG research, from another asset management firm in London, where she was Head of Governance and Responsible Investment. She started her career as a research analyst focusing on corporate social responsibility and sustainable development in emerging markets, working at SustainAbility, Core Ratings and Global Water Intelligence.
Therese has degrees from both the London School of Economics (Bachelor of Science degree in Environmental Management and Policy) and Oxford University (Master of Science degree in Nature, Society and Environmental Policy).
Rhynhardt is the Co-Head of 4Factor Equity and co-portfolio manager for the Global Core Equity Strategy at Investec Asset Management. He began his career at the firm in 2004 and was previously the Co-Head of SA Equity & Multi-Asset.
Over the years he has been responsible for the fundamental analysis of a broad range of listed companies, the portfolio management of a number of equity and multi-asset strategies as well as driving the equity research agenda within these strategies. Rhynhardt rejoined the firm in 2010 from Oryx Investment Management where he worked for two years as a research analyst and portfolio manager.
He graduated from the University of Pretoria with a Bachelor of Commerce in Financial Management Sciences and a Bachelor of Commerce (Hons) in Investment Management (cum laude), before completing a Master’s degree in Financial Management (cum laude) at the University of Cape Town. Rhynhardt is also a CFA Charterholder.
Martin Ford is the founder of a Silicon Valley-based software development firm and the author of two books: New York Times 1) bestselling Rise of the Robots: Technology and the Threat of a Jobless Future and The Lights in the Tunnel: Automation, Accelerating Technology and the Economy of the Future. Rise of the Robots received the Financial Times/McKinsey Business Book of the Year Award and was named one of Business Insider’s Best Business Books of the Year.
He has over 25 years of experience in computer design and software development, and holds a computer engineering degree from the University of Michigan, Ann Arbor and a graduate business degree from UCLA.
He has written for publications including Fortune, Forbes, The Atlantic, The Washington Post, Project Syndicate, The Huffington Post and The Fiscal Times. He has also appeared on numerous radio and television shows, including programs on NPR and CNBC, and is scheduled to appear at this year’s TED 2017 conference.