“Read about our new CEO’s vision and leadership style in our profile piece from page 24”


“Are we ready to step up?”


Tracy Vegro OBE asked the above question when she joined as chief executive of the Institute in September 2022, speaking of opportunities for the CISI to expand wider society’s understanding of the benefits of financial services, boosting financial literacy and investment advice. Read about her vision, leadership style, thoughts on diversity and inclusion, and more, in our profile piece (pp.24–27).


Shortly after Tracy spoke of the need to raise standards of knowledge, two expert contributors to The Review, Con Keating and Iain Clacher, submitted a piece analysing disruption to the UK gilt market, saying that pension schemes adopted liability- driven investment (LDI) because of a “misconceived accounting standard”(cisi.org/ldi). This point is picked up by a recent House of Lords committee report, covered in our Review of Financial Markets (RoFM) section (p.67), which states that LDI is a “solution to an artificial problem created by accounting standards”. Read Keating and Clacher’s detailed roundup of lessons learned (pp.61–66).


Our special report for this edition looks at indices – why we have them, the companies behind them, and how the new generation of indices in the passive world compares with more traditional ones (pp.16–23). It shows their staggering growth over the past decade or so, with, for example, their percentage of total share of the US funds market growing from 20% in 2011 to 43% in 2021.


Looking at a different kind of growth, our piece on pension freedoms says that, according to the Bank of England, assets in UK defined contribution (DC) schemes are expected to double from £500bn in 2021 to £1tn in 2030 (pp.37–40), and asks if DC funds, in the context of imminent regulatory change, are prepared to take on greater risk for greater reward.


We also look at risks arising from weaknesses in global corporate reporting (pp.34–36), which countries have more robust systems (Ukraine) than others (UK), and why.


Other highlights in this edition include our feature on the growth of corporate insolvencies post pandemic (pp.29–33), guidance and case studies for those thinking of becoming an expert witness (pp.41–44), our Grey Matters ethical dilemma about whether to accept a bonus which appears to come from a manager’s own pocket (pp.46–47), and Andrew Davis’s column about the impact of rising base rates on the global investment landscape (p.70).


As ever, please get in touch with any comments or suggestions.


Jane Playdon Review editor, CISI jane.playdon@cisi.org


2


Review editor, Chartered Institute for Securities & Investment Jane Playdon 20 Fenchurch Street, London EC3M 3BY T: +44 20 7645 0648 jane.playdon@cisi.org


Editorial Panel


Claire Perryman, Chartered MCSI State Street Chair


Helen Anderson, Chartered Marketer FCIM MCIPR Chartered Institute for Securities & Investment


Dr Emma Black, Chartered MCSI Cascade Cash Management


Michael Cole-Fontayn MCSI Chartered Institute for Securities & Investment


Scott Dobbie FCSI(Hon) Deutsche Bank


Felicity Hooper MCSI Investec Wealth & Investment


Amy Lazenby, Chartered FCSI Close Brothers


Julius Lipner MCSI Plutus Wealth Management


George Littlejohn MCSI Chartered Institute for Securities & Investment


Robert Lockie CFPTM Bloomsbury Wealth


Chartered FCSI


David Madgwick, Chartered MCSI Charles Stanley


Elizabeth Martine, Chartered FCSI Close Brothers


Tsitsi Mutiti, Chartered FCSI Charles Stanley


Tomas Owen-Jones CFP™ Chartered FCSI (Financial Planning) Rathbone Investment Management


Helen Packard Financial Conduct Authority


Frank Reardon, Chartered FCSI JM Finn


Nigel Sydenham, Chartered FCSI CCL Academy


Janet Walford OBE


Wardour contacts Editor Brian Gorman


Online editor Fred Heritage


Senior art director Steven Gibbon


Group account director David Poulton


Production manager Jack Morgan


Agency Founder Martin MacConnol


Cover Photography Charlie Surbey


Published on behalf of the Chartered Institute for Securities & Investment by Wardour, 2nd Floor, Kean House, 6 Kean Street, London WC2B 4AS


T: +44 20 7010 0999 Fax: +44 20 7010 0900 wardour.co.uk ISSN: 1357-7069


© The Chartered Institute for Securities & Investment (CISI). All rights reserved. Reproduction in whole or part prohibited without prior permission of the CISI. The CISI and Wardour accept no responsibility for the views expressed by contributors to The Review; or for unsolicited manuscripts, photographs or illustrations; or for errors in articles or advertisements in The Review. The views expressed in The Review are not necessarily those held by the CISI or its members.


CFPTM, CERTIFIED FINANCIAL PLANNER™ and the CFP Logo are certification marks owned outside the US by Financial Planning Standards Board Ltd.


The Chartered Institute for Securities & Investment is the marks licensing authority for the CFP™ marks in the United Kingdom, through agreement with FPSB.


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72