In this issue of ENGAGE we look at changes to LPF’s Strategic Asset Allocation and investment team and how our transition away from fossil fuel is well underway, ahead of the real economy. We also provide an update on escalation of engagement with climate laggards through voting, our policy engagement with government and regulators and supporting gender diversity in the investment industry.
Emmanuel Bocquet, Chief Investment Officer talks about the LPF investment team:
“LPF is unique in Scotland within the LGPS in holding FCA-regulated status. Having an internal investment team benefits the fund by reducing the cost of investing - less external manager fees - and facilitates more efficient implementation. Our 2023 actuarial valuation was 157%, a significant increase from 106% in 2020. The recent changes we’ve made to the investment team structure gives improved clarity of responsibilities and greater organisational resilience.”
Gillian de Candole, Portfolio Manager and Responsible Investment Lead provides insight into the energy transition and engagement:
“Approximately 40% of our £1.5bn infrastructure portfolio is invested in renewables and other energy transition assets and the transition away from fossil fuels at LPF is already well underway, ahead of the real economy. As a responsible investor we take action in support of the real-world goal to achieve net zero by 2050, through our engagement and voting activities. Engagement enables us to exert influence on companies to improve their business practices, rather than merely transferring ownership to potentially less responsible owners.”