SBAI Podcast

In this episode, SBAI’s Brian Digney is joined by Josh Kestler, President of Innocap, to explore one of the most significant structural trends in alternative investments: the rapid growth of separately managed accounts (SMAs). Drawing on more than a decade of experience building institutional managed account platforms, Josh explains why SMAs have evolved from a niche institutional solution into a mainstream investment structure reshaping how allocators access hedge fund strategies.

Josh begins by explaining what SMAs are, how they differ from traditional commingled funds and long-only managed accounts, and why institutional investors increasingly favour dedicated managed account structures. He outlines the evolution of the market following the Global Financial Crisis, through increasing demand for customisation, to today’s focus on capital efficiency and operational alpha.

The discussion explores the key drivers behind SMA adoption. Josh explains how greater transparency, enhanced governance, customised investment guidelines and improved operational oversight allow institutional investors to tailor portfolios to their specific objectives while maintaining strong risk controls. He also discusses how advances in technology and specialist managed account platforms have made these structures increasingly accessible for the world’s largest allocators.

Capital efficiency forms a major part of the conversation. Josh explains concepts such as notional funding, cross-margining and operational alpha, demonstrating how sophisticated platform structures can optimise collateral management and free up capital without altering investment strategies. He also discusses the operational infrastructure required to support these arrangements and the role platform providers play in overseeing risk, collateral and regulatory responsibilities.

The episode also examines how SMAs benefit investment managers. Josh addresses common misconceptions around transparency, operational complexity and data sharing, arguing that managed accounts can strengthen long-term partnerships between allocators and managers while providing emerging managers with institutional infrastructure and greater access to capital.

Finally, Josh shares his perspective on where the industry is heading. He discusses continued global adoption of SMAs, increasing demand for real-time data and customisation, and why he believes managed accounts will continue transforming institutional investment over the coming years.

Key takeaways include:

• Separately managed accounts provide institutional investors with greater control, transparency and portfolio customisation than traditional commingled funds.
• Capital efficiency through notional funding and cross-margining is becoming an increasingly important driver of SMA adoption.
• Managed account platforms deliver operational oversight, risk monitoring and regulatory infrastructure that support both investors and managers.
• Emerging managers can benefit from institutional operational support while building long-term relationships with sophisticated allocators.
• The continued growth of SMAs is likely to reshape how institutional investors access alternative investment strategies worldwide.

Whether you are an institutional investor, asset manager, hedge fund professional or investment consultant, this episode offers valuable insights into one of the fastest-growing developments in alternative investment structures and what it means for the future of institutional portfolio construction.

About the SBAI:

We are an active alliance of asset managers and allocators dedicated to responsible practice, partnership and knowledge. We do this by setting Standards, providing industry guidance and facilitating collaboration and exchange of ideas through our community of over 250 institutional investors and asset manager signatories responsible for approximately US$11 trillion in assets.

For more information, visit www.sbai.org.

For more information visit https://www.sbai.org/

In this episode, SBAI’s Brian Digney is joined by Stuart White, Board Director at the National Employment Savings Trust (NEST), Executive Director – Business Development at Impax Asset Management, and former CEO of HSBC Global Asset Management (UK). Drawing on more than 25 years in investment management and pensions, Stuart reflects on governance, long-term asset allocation and the evolving role of diversity in financial performance.   

Stuart begins by outlining what effective governance looks like in large, complex organisations. He discusses the importance of clear delineation between executive and non-executive roles, the value of continuous improvement at board level, and why cognitive diversity is central to better long-term decision-making.

The conversation then turns to NEST’s public service mandate. As a trust-based workplace pension scheme serving millions of UK members, NEST must balance fiduciary duty with broader policy objectives. Stuart explains how financial outcomes remain paramount, while long-term investment in UK assets, infrastructure and sustainable themes can align with member interests rather than conflict with them. 

Private markets form a significant part of the discussion. Stuart shares NEST’s perspective on allocating to alternatives, the importance of long-term partnerships, transparency in valuation and reporting, and maintaining cost discipline for members. He reflects on liquidity risk, the retailisation of private assets and the need for strong guardrails as private market exposure expands across default pension strategies.

Drawing on his experience at HSBC through multiple market cycles, Stuart offers a measured assessment of current risks, including elevated valuations, liquidity considerations and innovation in product structures. He emphasises that democratising private markets can be positive when supported by robust governance and client understanding.

The episode also explores diversity, equity and inclusion from an investment and fiduciary perspective. Stuart discusses his work with the Diversity Project and the Asset Owner Diversity Charter, highlighting the growing evidence linking cognitive diversity to stronger financial outcomes. He argues that diversity of thought, supported by effective leadership, is fundamental to good governance and long-term performance.

Finally, Stuart offers practical advice for senior professionals aspiring to board roles. He encourages building governance experience early, seeking diverse responsibilities, and aligning career choices with long-term purpose and values.

Key takeaways include:

• Effective governance depends on clear role definition, strong leadership and cognitive diversity at board level.

• NEST balances fiduciary duty with long-term investment in the UK economy and sustainable themes without compromising returns.

• Private market allocations require transparency, disciplined cost management and robust risk frameworks.

• The democratisation of private assets must be accompanied by strong regulatory guardrails and investor understanding.

• Cognitive diversity is increasingly supported by evidence as a driver of better financial outcomes and long-term value creation.

Whether you are a pension trustee, asset manager, board member or investment professional, this episode provides practical insights into governance, alternative investments and the evolving standards shaping long-term capital stewardship.

About the SBAI:

We are an active alliance of asset managers and allocators dedicated to responsible practice, partnership and knowledge. We do this by setting Standards, providing industry guidance and facilitating collaboration and exchange of ideas through our community of over 250 institutional investors and asset manager signatories responsible for approximately US$ 11 trillion in assets.

For more information, visit https://www.sbai.org/

For more information visit https://www.sbai.org/

In this bonus episode, SBAI’s Brian Digney is joined by Jonathan Dimson, Senior Partner at McKinsey & Company in London, for a focused discussion on how ageing populations are reshaping public spending priorities across Europe.

Jonathan explains why demographic change is a slow-moving but profound challenge, with Europe shifting from a model where around two working-age people support every one non-working person, towards a much more even balance. The conversation explores the implications for pensions, healthcare and long-term fiscal sustainability, particularly in pay-as-you-go systems where today’s workers fund today’s retirees.

The episode also looks at the broader spending pressures facing governments, including infrastructure renewal, defence, technology and welfare. Jonathan reflects on the limits of birth incentives, the potential role of automation and robotics, and the need for European economies to remain attractive, productive and profitable places to invest and build businesses.

Key takeaways include:
• Ageing populations will place growing pressure on pensions, healthcare and public finances.
• Pay-as-you-go pension systems face particular challenges as the worker-to-retiree ratio declines.
• Birth incentives have had limited success in reversing demographic trends.
• Innovation, automation and productivity gains may help offset some labour market pressures.
• Governments face difficult trade-offs between welfare, infrastructure, defence, technology and fiscal sustainability.

About the SBAI

We are an active alliance of asset managers and allocators dedicated to responsible practice, partnership, and knowledge. We do this by setting Standards, providing industry guidance, and facilitating collaboration and exchange of ideas through our community of over 250 institutional investors and asset manager signatories responsible for approximately US$ 11 trillion in assets.

For more information, visit https://www.sbai.org/

For more information visit https://www.sbai.org/

In this episode, SBAI’s Brian Digney is joined by Jonathan Dimson, Senior Partner at McKinsey & Company in London, where he leads the firm’s defence work across Europe. Jonathan explores the rapidly evolving European defence landscape, from the shifting tone at the Munich Security Conference to the growing gap between the clarity of US strategy and the more cautious, less coordinated approach across Europe. Against a backdrop of conflict in Ukraine and the Middle East, defence preparedness is becoming an increasingly urgent priority for governments and investors alike.

Jonathan breaks down what “readiness” really means in practice, moving beyond headline spending to a full defence system – from funding and procurement through to production, operational capability and continuous innovation. Drawing on lessons from Ukraine, he highlights how the economics of warfare are changing, with lower-cost, software-driven technologies such as drones reshaping traditional models and accelerating the pace of innovation.

The conversation also examines the scale of capital required to support this shift, from venture investment through to infrastructure, industrial capacity and resilience. Jonathan outlines the growing importance of “resilience spending” and the opportunities this creates for institutional investors, while also addressing structural challenges across Europe including fragmentation, procurement speed and workforce constraints. Looking ahead, he argues that success will depend on Europe’s ability to balance long-term peace with credible deterrence and defence capability.

Key takeaways include:

• Defence readiness is a system-wide challenge, requiring alignment across funding, procurement, production, operations and innovation.

• The economics of warfare are shifting, with lower-cost, software-driven technologies playing an increasingly central role.

• Private capital has a significant role to play beyond venture, particularly in infrastructure, industrial capacity and resilience.

• Europe faces structural challenges including fragmentation, slow procurement and workforce constraints.

• Public debate on defence spending trade-offs remains underdeveloped in many countries.

• Long-term success will depend on balancing deterrence with efforts to secure lasting peace.

About the SBAI:

We are an active alliance of asset managers and allocators dedicated to responsible practice, partnership and knowledge. We do this by setting Standards, providing industry guidance and facilitating collaboration and exchange of ideas through our community of over 250 institutional investors and asset manager signatories responsible for approximately US$ 11 trillion in assets.

For more information, visit https://www.sbai.org/

For more information visit https://www.sbai.org/

In this episode, SBAI’s Brian Digney is joined by Richard Tomlinson, Chief Investment Officer of Local Pensions Partnership Investments (LPPI), to discuss what it takes to build a modern institutional investment organisation in an increasingly complex global environment.

Richard reflects on the creation and evolution of LPPI as part of the UK’s local government pension pooling initiative, sharing lessons from scaling an investment platform from the ground up while maintaining strong governance and fiduciary discipline. He discusses the balance between internal capability and external partnerships, the role of consultants, and why a clear sense of purpose and stakeholder alignment is critical when managing public capital.

The conversation also explores how long-term asset allocation is evolving in response to structural shifts in inflation, interest rates and geopolitics. Richard outlines LPPI’s approach to diversification, real assets and sovereign risk, as well as the challenges facing traditional portfolio assumptions such as the 60/40 model. He offers a measured perspective on themes including AI, US exceptionalism, domestic infrastructure investment and the future role of currencies in institutional portfolios.

The episode concludes with a wide-ranging discussion on organisational culture, hybrid working, talent development and the cautious but pragmatic use of AI within an investment organisation.

Key takeaways include:

• Building institutional scale is an incremental process grounded in governance, clarity of mandate and long-term alignment with stakeholders.

• Internalisation should be driven by genuine comparative advantage rather than size alone, with strategic partnerships playing a central role.

• Traditional diversification assumptions are under pressure as inflation, interest rates and correlations shift.

• Real assets can play a meaningful role in protecting long-term purchasing power in a higher-inflation world.

• While technologies such as AI and digital assets are likely to reshape markets, humility and caution remain essential when assessing long-term outcomes.

Whether you are an asset owner navigating governance reform or an investment professional thinking about long-term portfolio resilience, this episode offers a thoughtful and practical perspective on stewardship, scale and decision-making in public pension investing.

About the SBAI:

We are an active alliance of asset managers and allocators dedicated to responsible practice, partnership, and knowledge. We do this by setting Standards, providing industry guidance, and facilitating collaboration and exchange of ideas through our community of over 250 institutional investors and asset manager signatories responsible for approximately US$ 11 trillion in assets.

For more information, visit https://www.sbai.org/

For more information visit https://www.sbai.org/

In this episode, SBAI’s Brian Digney is joined by Leda Braga, Chief Executive Officer of Systematica Investments, and Ben Dixon, the firm’s General Counsel and Chief Compliance Officer. Together, they explore one of the least understood but most consequential parts of operational risk: how investment managers define, manage and report trade errors.

Leda reflects on the evolution of transparency expectations since the early 2000s, the institutionalisation of the hedge fund industry, and the growing weight of regulatory disclosure. She also discusses the role of voluntary standards, how the SBAI creates a unique forum for allocators and managers, and why cultural alignment matters as much as process.

Ben explains how Systematica approaches error identification, near-misses and operational robustness through a no-blame, firm-wide culture. He highlights how inconsistent definitions across the industry make comparisons difficult, why many managers fear admitting errors, and how clearer frameworks can support better outcomes for both regulators and investors.

Key takeaways include:

• Transparency around errors varies widely, and without consistent definitions, data between managers is often not comparable.

• A no-blame culture supported by senior leadership helps firms identify and learn from mistakes before they escalate.

• Excessive fear of liability or regulatory consequences can discourage managers from open disclosure, even when doing so would improve investor trust.

• Voluntary standards, such as those developed by the SBAI, can help bridge gaps between allocators and managers by clarifying expectations and reducing conflicts of interest.

• Balancing who bears the cost of trade errors requires careful consideration of materiality thresholds, observation periods and insurance.

Whether you are an allocator assessing operational resilience or a manager designing internal controls, this episode offers a detailed and grounded discussion of the culture and systems behind responsible investment management.

About the SBAI:

We are an active alliance of asset managers and allocators dedicated to responsible practice, partnership, and knowledge. We do this by setting Standards, providing industry guidance, and facilitating collaboration and exchange of ideas through our community of over 250 institutional investors and asset manager signatories responsible for approximately US$ 11 trillion in assets.

For more information, visit https://www.sbai.org/

For more information visit https://www.sbai.org/

In this episode, SBAI’s Brian Digney is joined by Chantal Berendsen, Partner and Senior Hedge Fund IDD Analyst at Albourne Partners, and Richard Lowther Managing Partner and Co-Founder of Integral ILS, to explore the fascinating world of insurance-linked securities (ILS).

Chantal and Richard explain how ILS offers diversification benefits due to its low correlation with traditional capital markets, while also exploring the complexities, opacity, and relationship-driven nature of this niche asset class. They discuss the structure of the insurance and reinsurance ecosystem, the different segments of the ILS market, from catastrophe bonds to quota shares and retrocession, and the evolution of market transparency since major events like the 2017 hurricane season.

Listeners will gain practical insights into:

Ultimately, the discussion highlights how trust, transparency, and long-term perspective are essential to success in the insurance-linked investment space. Whether you’re an allocator exploring uncorrelated strategies or an asset manager seeking to understand this unique corner of the alternatives universe, this episode offers a clear, grounded introduction to ILS and how it fits within a modern investment portfolio.

About the SBAI:

We are an active alliance of asset managers and allocators dedicated to responsible practice, partnership, and knowledge. We do this by setting Standards, providing industry guidance, and facilitating collaboration and exchange of ideas through our community of over 250 institutional investors and asset manager signatories responsible for approximately US$ 11 trillion in assets.

For more information, visithttps://www.sbai.org/

For more information visit https://www.sbai.org/

In this episode, SBAI’s Brian Digney is joined by Ben Gedye and Josh Madeiros from K2 Credit to explore the rising role of portfolio credit insurance as a risk management tool in private credit and debt markets. As traditional banks scale back lending, private asset managers are stepping in — and with that shift comes the need for sophisticated ways to hedge credit risk.

Ben and Josh explain how non-payment insurance works, its historical roots, and its evolving use beyond banks — highlighting how managers can leverage it to improve risk-adjusted returns, facilitate leverage, and reduce concentration risk. The conversation covers structural nuances, underwriting processes, common mistakes, claim settlement mechanics, and how insurers evaluate not just the portfolio, but the asset manager’s governance and transparency.

Key takeaways include:

 Portfolio credit insurance is a tailored de-risking strategy, not just a traditional insurance product.

 Whether you’re a fund manager looking to enhance resilience or an investor assessing risk frameworks, this episode provides a comprehensive, jargon-free guide to a powerful but often overlooked financial tool.

About the SBAI:

We are an active alliance of asset managers and allocators dedicated to responsible practice, partnership, and knowledge. We do this by setting Standards, providing industry guidance, and facilitating collaboration and exchange of ideas through our community of over 250 institutional investors and asset manager signatories responsible for approximately US$ 11tn in assets.

For more information visit https://www.sbai.org/

For more information visit https://www.sbai.org/

In this episode of the SBAI podcast, Brian Digney sits down with Mike Butcher, Head Underwriter for Europe and Financial Institutions Underwriter at K2 International to explore the specialised insurance policies available for asset managers. The discussion covers key areas of coverage, including directors and officers, errors and omissions, crime, cyber, and employment practices liability, and highlights how these policies protect both firms and individuals.

Mike explains the importance of understanding coverage limits, insurer expertise, and claims handling when selecting policies. The discussion takes a deep dive into trade error insurance, detailing how managers can proactively correct mistakes and still recover costs through mitigation clauses. They also examine regulatory investigations, the growing risks posed by cyber threats and AI (such as deepfakes and “AI-washing”), and the rise of employment-related claims in financial firms.

Throughout, Mike emphasises best practices: notifying insurers promptly, reviewing contract clauses carefully, documenting HR policies, and engaging with insurers who understand the asset management business. The episode provides practical insights to help managers strengthen resilience, safeguard investors, and build long-term partnerships with their insurers.

About the SBAI:

We are an active alliance of asset managers and allocators dedicated to responsible practice, partnership, and knowledge. We do this by setting Standards, providing industry guidance, and facilitating collaboration and exchange of ideas through our community of over 250 institutional investors and asset manager signatories responsible for approximately US$ 11tn in assets.

For more information visit https://www.sbai.org/

For more information visit https://www.sbai.org/

This episode is part of the ongoing SBAI and Morgan Lewis Regulatory Compliance podcast series, co-hosted by Christine Ayako Schleppegrell, Partner at Morgan Lewis, and Brian Digney, Research and Content Director at the SBAI.

This collaboration offers timely insights into global regulatory developments affecting the alternative investment industry.

In this episode, the discussion covers:

- The SEC’s new leadership under Chair Paul Atkins and what his appointments and early decisions signal for enforcement and rulemaking.
- The retailisation of private funds in the US and how it could open up the asset class to a broader base of investors.
- Key developments in outbound investment restrictions from the US, including the recently enacted programme targeting investments in countries of concern such as China, Hong Kong, and Macau.
- Practical guidance for managers and allocators on navigating outbound investment compliance obligations.
- The UK’s proposed divergence from EU regulations with a restructured approach to AIFMD and what this might mean for UK-based fund managers and international investors.
- How the FCA and UK Government aim to strike a balance between innovation, growth, and regulatory alignment with global standards.
 

About the SBAI:

We are an active alliance of asset managers and allocators dedicated to responsible practice, partnership, and knowledge. We do this by setting Standards, providing industry guidance, and facilitating collaboration and exchange of ideas through our community of over 250 institutional investors and asset manager signatories responsible for approximately US$ 8tn in assets. 

For more information visit https://www.sbai.org/

In this episode of the SBAI podcast, Brian Digney sits down with Nic Miller from Aedile Consulting to explore the evolving cyber threat landscape facing asset managers. With a background at GCHQ and extensive experience advising investment firms, Nic breaks down the most pressing cybersecurity risks and misconceptions — from the real impact of opportunistic attacks to the limitations of outsourcing IT and relying on "box-ticking" solutions like standard penetration tests.

Listeners will gain practical advice on strengthening cyber and information security strategies, ensuring operational resilience, and conducting more meaningful due diligence on third-party providers. Nic also shares why cultural attitudes toward security and risk ownership matter just as much as technical controls — especially for small to mid-sized firms with limited resources.

Whether you're an investor, a manager, or part of a risk oversight team, this episode delivers clear, actionable takeaways to help your organisation better navigate the complex world of cybersecurity.

About the SBAI:

We are an active alliance of asset managers and allocators dedicated to responsible practice, partnership, and knowledge. We do this by setting Standards, providing industry guidance, and facilitating collaboration and exchange of ideas through our community of over 250 institutional investors and asset manager signatories responsible for approximately US$ 8tn in assets.

For more information visit https://www.sbai.org/