The guest for this episode of The Professional Investment Podcast is Phil Butler, deputy chief investment officer for the People’s Pension. His news story of the week is LCP latest research showing progress from master trusts on climate change policy but more to be done in the detail.

We discuss how asset owners should approach stewardship - how they need to be clear-eyed about what they need to achieve and work closely with asset managers on this issue as well being prepared to collaborate with others.

People’s decision to move away from pooled funds to segregated mandates while also switching managers illustrates what can be won by managers whose sustainable investment philosophy is aligned with those of asset owners.

But even with the best efforts, trying to affect change through stewardship can feel like hard work. This is one of the appeals of a private asset portfolio – a more direct relationship can lead to greater influence on the company. Phil talks about how People’s is thinking about UK productive assets.

At the end of the half hour, Phil and I get more philosophical about how to think about climate risk across the whole portfolio and how to consider it across the life time of a member from building up their wealth to spending it over their retirement.

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ABOUT THE GUEST:

• Phil Butler – Deputy Chief Investment Officer, People’s Partnership 
• Phil is Deputy CIO and joined Peoples Partnership in December 2024. Phil works with Dan in the CIO office to lead the investment team of People’s Partnership, driving forward the investment strategy of the £35bn+ People’s Pension Master Trust which serves over 7 million members and is one of the largest asset owners in the UK.
• Prior to this, he spent 14 years at M&G Plc as a multi-asset portfolio manager specialising in long only portfolios with varying risk ratings across several client types. Before M&G, he spent 15 months at the Bank of England as a research assistant whilst completing his degree. Phil has experience working with Trustees, Charities and is a NED for a financial software platform.
• Phil holds a degree in Banking and International Finance from Bayes Business school, is a CFA Charterholder and successfully passed the CFA Certificates in ESG Investing and Climate & Investing.
• Phil was previously an approved person by the FCA.

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ABOUT THE HOST:

Charlotte Moore is an award-winning journalist and co-founder of Moore Squared Communications. She has spent almost two decades writing about how the UK’s largest investment organisations allocate their capital for a number of different specialist magazines including Professional Pensions, IPE and MandateWire. She started this podcast to increase understanding of how and why the UK’s £3 trillion pensions industry invests its members’ capital to provide the best possible retirement.

🔗 https://lotsmoore.co.uk/

00:00 – Introduction & Welcome

00:21 – Guest Introduction: Phil Butler, Deputy CIO

00:43 – News Story of the Week

01:46 – LCP Report: Master Trusts & Climate Policy

03:10 – Climate Risk & the 1.5°C Challenge

05:02 – System Stewardship & Industry Collaboration

07:48 – Progress on Climate Advocacy in Pensions

10:12 – Engagement vs Divestment Discussion

12:35 – Measuring Real-World Impact

15:04 – Transparency & Data Quality Challenges

17:42 – Stewardship Priorities for Pension Schemes

20:18 – Integrating Climate Strategy into Portfolios

23:06 – Asset Allocation & Long-Term Thinking

25:40 – The Role of Fixed Income & Credit Markets

28:14 – Catalysts Needed for Future Change

31:05 – Looking Ahead: Priorities for the Sector

33:20 – Final Thoughts & Episode Close