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LGPS pool puts investment system fix at heart of new climate policy – IPE.com

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Brunel Pension Partnership is embarking on a new climate policy aimed at systemic change in the investment industry, as part of which it will consider whether to ditch asset managers and companies if they have not lived up to expectations.

The new policy is the result of in-depth consultation with Brunel’s founding 10 local authority pension fund clients, who have £30bn (€35bn) in assets between them.

Faith Ward, chief responsible investment officer at Brunel, said its clients had large and ever-increasing demands with respect to climate change but that Brunel had found “the financial system isn’t going to be able to deliver what we want in its current form”.

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According to the pool, the financial system is not “fit for purpose” for keeping the global average temperature increase to well below 2°C compared with pre-industrial levels.

Its new policy consists of a plan built on five principal areas where Brunel considers “there is a critical need for action and where we believe we can make a significant difference”: policy advocacy, product governance, portfolio management, positive impact, and persuasion.

The policy will guide Brunel’s work on climate change over the next three years. In late 2022, to tie in with the 10 client pension funds’ upcoming triennial valuation and investment reviews, it will review the policy.

“We’ll be taking stock of the whole policy,” said Ward. “What’s worked, what hasn’t, how have asset managers, service providers and companies responded to the challenge.”

It is at this stage that Brunel could decide to scrap asset managers and/or exclude companies.

For now, because its goal is to drive change in the way asset managers work, the asset pooling company has decided not to issue exclusion criteria for companies.

Ward said exclusions “make life really easy for the asset manager”.

“It doesn’t actually make them change their analytics, their investment process, how they think,” she told IPE.

As part of stress-testing its portfolios under a range of climate scenarios Brunel challenge its investment managers to demonstrate reduced exposure to climate risk as well as effective corporate engagement that puts companies on a trajectory to align with warming of at most 2°C.

Managers that fail to do so risk having their mandates removed. Brunel has  said that where it has found asset managers’ engagement with companies to be ineffective, it would also consider whether it should introduce specific exclusion criteria for companies instead of sacking managers.

2°C-alignment projects

The product-focussed prong of the pool’s new climate policy relates to its view that there is “a general absence of investable investment products that make a substantive contribution to climate change mitigation or adaptation”.

Under the new policy, the pool will be looking to extend the range and quality of products available to its clients, for example in fixed income, and invest in the development of more innovative products.

A specific aim is to seek a decarbonisation of at least 7% year-on-year in its listed equity portfolios, a target that it will also review as part of the 2022 stocktake.

Brunel has pledged that by 2022 it will have assessed the degree to which its main listed equity portfolios, and possibly other portfolios, were at least 2°C-aligned.

Acknowledging that the methodologies and frameworks to carry out this type of assessment were under development, Brunel said it would therefore prioritise supporting efforts, for example by piloting methodologies, that enabled it to assess and report on its portfolio performance.

“Benchmarks are fundamentally flawed when it comes to climate”

Faith Ward, chief responsible investment officer at Brunel

Brunel also has improvements to benchmarks in its sight, with Ward describing these as “fundamentally flawed when it comes to climate”.

According to its climate policy document, the pooling vehicle will explore the role that investment benchmarks play in driving investment decisions and “in constraining our ability to invest in areas that make a meaningful contribution to climate change mitigation and adaptation”.

“We will press the industry to make the core benchmarks more compatible with a 2°C-aligned world,” it said.

Earlier this month Brunel announced that around 50% of its clients’ assets had been transitioned to the pooling vehicle.

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Record investment in MB highways in store for 2023 – DiscoverWestman.com

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MLA for Turtle Mountain, Doyle Piwniuk, says he’s looking forward the New Year as one full of accomplishments.

“I’m very optimistic, we have a very big year going forward provincially,” he explains.  “We’re looking at economic development, reconstructing of more highways, like Hwy 23 in the region, and we have more highways to fix.  Going forward in 2023 there will be a record investment in our highways.”

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“It’s also going to be a good year for the Turtle Mountains area too because of the opportunities at the International Peace Garden and the economic development in the different communities. I believe we are going to have a very bright 2023,” adds Piwniuk.

“On behalf of my family to your family, I want to wish you a very merry Christmas and a happy New Year,” he shares.  “And, any time you want to get ahold of me please contact info@dolyepiwniuk.ca or you can call our number at 204-552-0130.”

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Choose Your Investment Guru Wisely – Forbes

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If you want to learn how to play tennis, it makes more sense to take the Masterclass from Serena Williams than to watch a random infomercial or a video from your high school coach. If you want to learn about investing you should also seek out the best.

Warren Buffett is verifiably the best investor of all time, with an audited track record going back several decades. Why, then, do so many would-be investors choose other role models, who all too often turn out to be hucksters and hacks—or just plain misguided?

I’ve asked the question many times. I’ve posed it to my NYU finance students each semester for over 20 years. Still, there’s no satisfying answer. I could hardly believe it when Bloomberg reported that Caroline Ellison of Alameda, FTX, and crypto infamy (and the former girlfriend of Sam Bankman-Fried) had supposedly learned investment strategies from Edwin Lefèvre’s Reminiscences of a Stock Operator, a roman à clef based on the life of Jesse Livermore, the stock trader who made a fortune shorting stocks before the 1906 San Francisco earthquake.

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I’ve heard other young stock enthusiasts cite the book before. In 2021, Business Insider published a profile of 20 ambitious teen traders. One even mentioned Reminiscences as a favorite book. It’s one thing to read this book as entertainment. It’s another thing entirely to read it as an instruction manual. That’s because the book was published in 1923—long before Jesse Livermore’s last act.

At the age of 14, young Livermore had his first job posting stock quotes at the Boston branch of Paine Webber. His colorful life makes for great artistic inspiration and Lefèvre was probably unable to resist the allure. Livermore made and lost his fortune many times, not a sign of a good investor but rather the clear profile of a gambler and speculator. Livermore was a flamboyant character. He had a railcar, yacht and an extravagant apartment on the Upper West Side. He belonged to exclusive clubs and kept many mistresses. In the panic of 1907, Livermore made a million dollars in a single day. This was real money back then. But by 1915 he had filed for bankruptcy—and not for the first time. In the end, he lost his entire fortune and filed for bankruptcy a third time. This was in 1934, when his assets were listed at $84,000 and his debts at $2.5 million. That was his final business act. His final personal act was to shoot himself to death in the cloakroom of the Sherry-Netherland hotel in Manhattan on Thanksgiving Day, 1940.

In an era where people get their news from TikTok and Instagram, it’s not surprising that they would take the same dumb approach to learning about investing. But if you ever base your investment technique on a novel, be sure you know the ending of the real story first.

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Government of Canada announces investment in three Waterloo Region tech businesses – ITBusiness.ca

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Today, the Federal Economic Development Agency for Southern Ontario (FedDev Ontario) announced an investment of more than $10 million in three Kitchener-Waterloo tech companies.

Miovision Technologies is a Kitchener-based company that lets cities and towns reduce traffic congestion and vehicle emissions while improving public safety through intelligent transportation solutions. With the $7.4-million repayable investment through the Jobs and Growth Fund, Miovision will develop TrafficLink and Scout, its traffic monitoring hardware and software. It also plans to increase its network by up to 100,000 intersections in North America over the next four years, and will further its transition into “Smart City” technologies, expanding its presence globally and adding 58 jobs,

Advanced Electrophoresis Solutions Ltd. is a Cambridge medical technology manufacturer specializing in the development of testing instruments for pharmaceutical companies to analyze protein structures and interactions. The repayable investment of over $1.7 million, through the Business Scale-up and Productivity stream, will allow the company to increase the production of ready-to-use customized testing instruments, and grow its sales and marketing team. Advanced Electrophoresis Solutions is looking to expand its presence in Asia and Europe while also creating 11 additional jobs within Waterloo.

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Huron Digital Pathology is a St. Jacobs-based medical equipment company that develops digital imaging solutions in the pathology field for the clinical, research and education markets. With the $1-million repayable investment through the Business Scale-up and Productivity stream, the company can increase the production of its digital pathology scanners. It hopes to revolutionize disease diagnosis by being the first company to bring to market an Artificial Intelligence (AI) enabled image search engine for use in the pathology field. Huron Digital Pathology is looking to increase its productivity. with the goal of producing over 100 scanners every year and creating 11 skilled jobs.

“Tech companies, like the three highlighted today, are what builds Waterloo region’s growing resumé of research and innovation. Canadian tech companies work tirelessly to bring new products and processes to markets that will benefit our regional economy and Canadians,” said The Honourable Filomena Tassi, Minister responsible for the Federal Economic Development Agency for Southern Ontario. “The Government of Canada is committed to supporting businesses as they adopt new digital solutions, enhance global competitiveness and create local jobs that will contribute to a growing economy that works for everyone.”

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