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Over the span of this year, I will have spent more than the equivalent of one working day in the dentist’s chair. It is a family history of terrible teeth rather than an aversion to brushing, but the fact remains: I spend far too much time and money on something I can’t control—or can I?
Upon recounting my dental woes to a friend, I mentioned how pleased my dentist was that he had managed to save the latest molar that had come to grief. “Of course he is—it’s in his interest to do so, even if it’s not in yours,” he said. I quizzed him further, and he responded: “Surely it is in your dentist’s interest to try and hang onto a set of teeth that will going to take continued filling and mending—why wouldn’t he?” Then I remembered hearing about his new house and growing brood of children…
To come back to why I’m recounting this story, I had never considered it that way—and this is the basis for much of this second aiCIO European edition: Looking from another perspective, taking it all in with fresh eyes, and questioning everything that has been forever taken at face value. Our cover story delves into the vague ideology of investment outsourcing and, instead of just recounting its remarkable growth, we push for a concrete proof of value-add—and examine how it has to evolve to be of real benefit to current and future users. Our guest columnist, who has spent more than 20 years watching investors, challenges you to turn your point of view around; this is our aim too.
The newly award-winning Charlie Thomas visits Germany to find out how its pension funds are fighting back against life-threatening regulatory proposals, and we probe credit markets to uncover new ways of extracting useful value through innovation. The next part, the execution, is all down to you.
Finally, the new CIO of the UK’s Pension Protection Fund grants aiCIO his first interview and explains how he is using his previous career in investment banking to bring new insights to the lifeboat for bankrupt companies’ pension funds.
Often it is not comfortable to make such dramatic changes, but in order to keep a fresh outlook—and investment conscience—it is essential. We hope you will find this edition challenging and that it helps you change your perspective … at least for 24 pages.