The job interview: Vicki Bakhshi

F&C Investments has appointed Vicki Bakhshi as head of governance and sustainable investment (GSI). Bakhshi has been a senior member of the GSI team for a number of years, most recently as head of engagement. Prior to joining F&C, she spent five years in the UK government, including time as policy adviser on environmental affairs to the Prime Minister.

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F&C Investments has appointed Vicki Bakhshi as head of governance and sustainable investment (GSI). Bakhshi has been a senior member of the GSI team for a number of years, most recently as head of engagement. Prior to joining F&C, she spent five years in the UK government, including time as policy adviser on environmental affairs to the Prime Minister.

F&C Investments has appointed Vicki Bakhshi as head of governance and sustainable investment (GSI). Bakhshi has been a senior member of the GSI team for a number of years, most recently as head of engagement. Prior to joining F&C, she spent five years in the UK government, including time as policy adviser on environmental affairs to the Prime Minister.

What are your priorities for the role?

More asset owners are coming to the view that they want to invest in a responsible way. The biggest barrier I see right now is the difficulty of translating that desire into practical solutions. I want to see us guiding clients through what investor responsibility means and demonstrating the value it can bring, both financially and in terms of wider benefits such as reputation and ethics. I will continue to develop solutions to help achieve clients’ varied needs in this area: including our engagement and voting services, sustainable and ethical funds, and ESG-integrated mainstream funds.

What governance and sustainability issues do investors face?

Those pension funds that have signed up to the UN Principles for Responsible Investment (UN PRI) are about to face a new set of reporting requirements and a growing number of regional standards, such as the UK Stewardship Code, are also creating obligations. This type of reporting requires different expertise and data to traditional financial reporting, and can be challenging and time-consuming. Levels of complexity have also risen, as responsible investment principles are applied to more asset classes. Pension funds traditionally focused on responsible investment within their equity holdings, but a growing number now have approaches spanning across corporate credit, sovereign bonds, private equity, real estate and commodities. There is no one-size-fits-all approach and considerable time and attention is needed to craft an appropriate strategy.

How should they address these issues?

The aim is to find a strategy that fits with the investor’s investment style and values – as well as with their resources. Trustees need to think about their approach on key questions, including whether they will have an active company engagement and voting policy; whether they will allocate actively to sustainable investment solutions; and what role ESG factors will play in their manager selection. They need to think about what can be done in-house, and what should be outsourced, whether it be to their fund managers or to third-party specialists. And finally they need to think about how they report, including adherence to codes such as the UN PRI.

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