ajeet manjrekar

DB AdvisorsDeutsche Bank Group

TBLI Conference Europe 2011Pension Funds and Ageing Societies

Ajeet Manjrekar, DB AdvisorsNovember 2011


Important Information

This document is issued in the United Kingdom by Deutsche Asset Management (UK) Limited (“DEAM UK)” of One Appold Street, London, EC2A 2UU. Authorised and regulated by the Financial Services Authority. This material is intended for information purposes only and does not constitute investment advice or a personal recommendation. This document should not be construed as an offer to sell any investment or service. Furthermore, this document does not constitute the solicitation of an offer to purchase or subscribe for any investment or service in any jurisdiction where, or from any person in respect of whom, such a solicitation of an offer is unlawful.

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We are living longer….

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Source: National Vital Statistics Report, Volume 53 No. 6


…but that creates fresh challenges

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Source: World Economic Forum research, Expatica HR


Where do we go from here….

− Raise awareness of the challenges arising from ageing societies

− Evaluate investment objectives from both a short and long term perspective

− Understand investors’ tolerance for risk in achieving key objectives

− Consider the broadest opportunity set in defining an investment strategy

− Ensure that Environmental, Social and Governance issues are an integral part

of the risk management framework

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Photographs for illustrative purposes only


An alternative perspective on strategic asset allocationPension fund investors, whether institutions or individuals, must re-think their investment time horizon and retirement income needs

0 - 1 Years 1 - 5 Years 5+ Years

Liquidity

— Addressing short term cashflow requirements

— Investing in secure assets to meet their immediate needs

— Ensure certainty of capital

Stable Income

— Delivering a diversified and consistent source of income

— Primarily investing in bond assets to generate stable stream

— Ensure inflation protection

Sustainable Growth

— Capturing yield from investing for the longer term

— Focus on both liquid (e.g. equities) and illiquid assets (e.g. infrastructure)

— Capture the illiquidity premia

Integrated risk managementExplicit consideration of risk from both a financial and ESG perspective

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Generating stable incomeThe importance of ESG risk factors

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Environment Social Governance



Delivering sustainable growthThe importance of ESG risk factors

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Environment Social Governance



Delivering sustainable growthThe importance of ESG risk factors

− Focus on investment opportunities aligned to ‘big-picture’ issues facing the

world with clear objectives and targets

− Embrace illiquidity within investment strategies in order to deliver more

sustainable growth without concern over mark-to-market volatility

− Liquid investments should focus on greater engagement and long term asset

ownership in order to deliver positive change

− Governments, regulators, service providers and investors must work together to

find solutions

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ajeet manjrekar

Economy & Finance