Sebastian Schulze

Articles from Sebastian Schulze

  • A New World and New Opportunities

    Part 2 of the Asset Class ‘Back to the Future’ series. The Autumn 2010 edition of Asset Class looked at attractive investment opportunities for pension schemes as traditional investors began looking elsewhere ********************   In the Autumn of 2010, Asset Class focussed on attractive investment opportunities that were starting to draw the gaze of pension schemes. Traditional investors, like banks and insurance companies, had become far less active in certain areas. This was not because these assets were low quality. Rather, they had become far less ... more

    Optimist: “The glass is half full.” Pessimist: “The glass is half empty.” Engineer: “This container is too big for the amount of water it is holding.”   We all know that for many things in life the Goldilocks approach works pretty well. Nevertheless when confronted with a complex problem, we often seem keen to find the easiest, quickest solution. In most cases, this simply does not work. A car engine or an airplane is a fiendishly complex thing to design and build. It took Airbus 11 years of work and estimated development costs of &eur ... more

    The most frequently repeated mantra in pension land is probably that everything will be well once interest rates rise from their unprecedentedly/artificially/outrageously low levels. The value of liabilities will fall, funding positions will improve and the future will look a lot brighter for defined benefit schemes. There are a number of reasons why this desired state of affairs may take longer to arrive than most people would like. Whilst it is clearly difficult to make market forecasts (after all if we were good at forecasting the markets we would all have different jobs…), it ... more

    Intuitively, the current market environment appears to paint an ambiguous picture for future equity returns. On the one hand, uncertainty about the outlook for economic growth should have a negative impact on equity returns. It should be more difficult, after all, for companies to make profits and to invest if the economy is on a rollercoaster ride between expansion and recession and nobody can really foresee what the future holds. On the other hand, low interest rates could also be positive for equity returns. Low rates should make equities more attractive vis-à-vis other asset classes ... more

    Decadent people dressed in linen who have been dead for two millennia may not look like an obvious source of pensions advice. But the fall of the Roman Republic holds one very important lesson for pension funds today.   By the latter half of the second century BC, the Roman Republic had become the dominant power in the Mediterranean. Its arch enemy Carthage had been vanquished – the city razed to the ground and its population sold into slavery in 146 BC. The Greeks had been brought to heel by comparable demonstrations of Roman ruthlessness. None of its remaining competit ... more

Focussing on the big picture whilst being obsessed with (relevant) details, Sebastian is a Director in Redington’s Investment Consultancy team. He joined straight from university in 2010 as a graduate and supports several senior consultants in delivering Redington’s services to clients.

Before joining Redington, Sebastian spent most of his time reading Politics, Philosophy and Economic at a university in the north of England (one of the “three great English universities” according to Captain Edmund Blackadder) and European Political Economy at the London School of Economics. However, he hails from a rather large country on the Continent and continues to work on improving his English accent.

With a strong interest in most things historical, Sebastian is often pleasantly surprised how useful a background in history and philosophy can be for understanding financial markets and the world of pensions.