Dialogue Capital: Interview with Mike Jensen, Co-Chief Investment Officer of Local Pensions Partnership

 



1)
    How do you rate the infrastructure market that you are investing in or considering right now in general?

Infrastructure is a major plan of LPP’s investment thesis, with a current allocation of 10-15% infrastructure equity. 


 2)   What sectors and regions are important to you?

By default we currently have a bias towards renewables and over time we need to build out a more balanced portfolio. 

Therefore, we are looking for opportunities in transport, social and transmission. Geographically, we are generally ambivalent, with a slight preference for G8. My view is that our home market is too competitive and consequently too expensive.


3)    How much infrastructure have you allocated in your portfolio?

Currently 12.5% but a revised AA strategy is due and after we valued our portfolio we will likely raise Infrastructure allocation towards 20%. 



4)  What is the potential impact of Brexit on your investments? 

As a global fund with most its investments outside the UK and unhedged the effect is limited for now but 

I am strongly of the opinion that the UK economy with slow as the details of Brexit terms become clear. 

With that in mind, I expect GBP to remain weak and therefore would expect to retain a global focus unhedged. 


5)  What is the impact of the election of President Trump on your investments? 

As our bias is predominantly outside the UK, the currency effects are positive but the potential for market instability is a concern as are the potential effects of reductions in global trade and therefore global growth. I am also concerned that market participants remain too sanguine on the potential risks. There does seem to be general Panglossian view of outcomes at the moment. 

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