Studio interview: Open-ended DB schemes ensure extra-long-term approach, Brunel CIO tells Asset TV

“Everyone talks about long-term investing but our clients are open-ended Defined Benefit schemes, which makes them exceptionally long-term,” said David Vickers, CIO at Brunel, in an interview with Asset TV’s Mark Colegate.

“Closed DB schemes already think long-term, but they by definition have an end-zone. Our clients have cashflows always coming in and going out – so you can pick up premia that others perhaps cannot.”

In a wide-ranging interview, the CIO (pictured above) was quizzed on the recent market ructions around LDI at pension funds; Brunel’s place-based investing product, the Cornwall Local Impact portfolio; plans for a third cycle of private markets portfolios; the new paradigm of persistent inflation; and what the current global energy shortage means for Net Zero.

“On Net Zero, I’d expect some short-term reversion  as a few mothballed plants are reopened,” said Vickers. “But people have made their commitments and actually it’s very hard to go back on Net Zero commitments that have already been made. You’re also seeing a huge acceleration in alternative energy sources, and in Europe I think it’s mostly drive by Germany, which is more reliant on Russian gas than most. They’ve committed to 80% renewable energy by 2030 and 100% by 2035 – and some of that is because resilience is a bigger issue than price.”

You can watch the complete interview on the Asset TV website.