Fund in Focus: Fund for Longevity and Social Change in the Pacific

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James Gard: Welcome to Morningstar. With me today is Dani Saurymper. He is the portfolio manager of the Pacific Longevity & Social Change Fund. Thanks for joining us today, Dani. Can you give us an idea of ​​what the fund does?

Dani Saurymper: Yeah. So in its simplest form, we are an articulated fund that seeks to capitalize on changing demographics by essentially identifying themes and companies that are already investable with proven commercial viability and are essentially poised to benefit from growth secular long-term presented by the increase in life expectancy. .

Gard: So, it’s ESG week here at Morningstar. You have the S of ESG covered in the name of your fund. What about the other factors, the E and G of ESG?

Saurymper: Yeah. So I would say the three pillars are really interrelated. Without good governance, there is unlikely to be any progress or action on the environmental or social pillars. And performance measures such as diversity fall under both the social and governance pillars. So, for example, gender-diverse boards, greater female leadership in general has been shown to improve the effectiveness of investments, results in better engagement among board members, and ultimately leads to better discussions on social issues and climate change. And it’s also important to mention, I suppose, that strong gender diversity and inclusion ultimately strengthens all three facets of a company’s ESG operations. Employee diversity leads to greater awareness of environmental issues and the strategies needed to address them. Organizations obviously actively recruit from a range of ethnic and social backgrounds. And this experience ultimately leads to better satisfaction and loyalty among employees, which obviously helps in terms of a higher social pillar score.

I would also mention that we obviously don’t ignore the environmental pillar or the governance number. We’re actually – we score pretty well in that regard based, sort of, on the companies that we’re looking to invest in, they’re generally low-resource-intensive types of companies and sectors. And so we see a lot more impact of driving action in the social dimension as opposed to kind of E and G, if that makes sense.

Gard: So, Dani, you might spend a lot of time researching future trends. Can you give us an overview of how you think humans will develop in the next 10, 20, 50 years?

Saurymper: Yeah. So our starting point is the fact that a child born today in developed countries has more than a 50% chance of living to be 100 years old. And if you follow that down to education, professional careers, retirement, it’s going to have a dramatic effect on how we traditionally manage our lives. And we have to think about well-being throughout life, not just at the end of life, and we have to think about it through three different vectors. The first is lifespan – so how long are we going to live? And if we want to live to be 100, then we have to think about lifespan, because there’s no point in living the last 10 years of that 100 in a decrepit state.

And then, finally, you also have to think about the estate plan because you’re going to have a life in several stages, several careers, a much longer median period. And even when we retire at 70 and, unfortunately, maybe even 75 for some of us, we will have a very long retirement to accumulate wealth and then allow ourselves to go through this phase of decumulation. So those are some of the things and the dynamics that we struggle with when we think about investing in the theme.

Gard: Great. There’s a lot to digest there and some incredible ideas about the future of work and the future of the human race. So, thank you for your time, Dani. And for Morningstar, I’m James Gard.

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