On a (Pensions) Road to Nowhere

CIO Europe’s Nick Reeve on a pension road trip that ended in a borrowed consultant’s office in Bristol.

It seemed like a good idea at the time.

In a bid to escape the London bubble in which CIO Europe is comfortably ensconced, a road trip was planned for the beginning of March. A dozen pension fund meetings were envisioned, taking place in Bristol, Cardiff, Birmingham, Coventry, Warwick, and even the jewel of the north-east that is Goole.

There were dreams of navigating country roads in an open-topped sports car, the radio turned up to 11. Visions of tea and scones in cobblestoned courtyards outside beautiful cathedrals while discussing longevity and the weather.

Alas, it’s never that simple. In reality, pension managers and investment directors are busy people—particularly in the weeks leading up to the end of the financial year.

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There were visions of tea
and scones in cobblestoned courtyards outside beautiful cathedrals while discussing longevity and the weather.
And so, instead of roaring off down the M4 motorway in the CIO-mobile, it was a train to Bristol on a rainy Friday, and a borrowed meeting room in a local consultant’s office on Monday.

Fortunately, one CIO is keen to meet. Mark Mansley of the £2.3 billion Environment Agency Pension Fund oversees one of the most innovative investment teams in the UK.

It’s hard not to think of long-term sustainability in the Environment Agency’s office—after all the UK government institution was set up to manage just that. The entrance is a four-storey bottle-green glass façade that positively glows in Bristol’s spring sunshine.

A video in the entrance hall details the many ways in which Horizon House, the agency’s headquarters, has been designed to minimise its carbon footprint. Rainwater is collected and used throughout the building, recycling bins are everywhere, and even the air conditioning uses the building’s natural circulation to reduce its reliance on electricity.

While the agency’s staff are out improving the UK’s flood defences, its pension fund has been plotting a responsible investment course—and taking their third-party managers with them.

“We’re reasonably comfortable with the idea of pushing the industry forward,” Mansley tells CIO over a cup of “solar-powered tea” (that’s what it says on the mug, at least).

As he outlines bespoke approaches to smart beta and private equity, it is obvious Mansley relishes the pension’s industry-leading methods of engaging with—and challenging—managers.

His team’s efforts have been recognised by many: as I am introduced to the small team tucked in a quiet corner of the second floor (we took the stairs, naturally), Mansley indicates a stash of awards displayed on top of a filing cabinet. Two are from CIO Europe’s Innovation Awards.

Next to the reception desk downstairs there is a large set of white shelves forming an impressive trophy cabinet. There are prizes for civil engineering projects and a prestigious award for flood management on the West Sussex coast. I am assured the awards from CIO will be proudly on display next time I visit.

Mansley and his colleagues have a fantastic story of innovation and engagement to tell—but they can’t be the only ones. More UK and European pensions must be working hard to promote positive change in asset management.

So let’s hear about it. Contact us, and the CIO tour bus will be on its way.

Being tired of London isn’t being tired of life—it’s just the beginning of a new (pensions) journey.

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