The progress has not slowed down, on the contrary. There are many new projects and initiatives. I find the collaboration between Mirae Asset Securities and Polygon Labs particularly interesting, as they offer infrastructure assets through tokenized securities.

It involves real physical assets that are extremely difficult to securitise and incorporate into traditional investment vehicles. Tokenization can conceptually create fungibility.

The most activity is happening in money market funds. This is primarily because tokenized money market funds can serve as collateral for futures exchanges. All major players, from J.P. Morgan to Goldman Sachs and BlackRock, are involved.

We are involved as well and have several projects underway in the US.

From my perspective, the recent changes in Brussels following the elections will lead to a lot of new discussions. However, I observe that there is usually a standstill in regulation six months before and after elections.

It's important to explore how shares and rights can be multiplied. The idea of stock has been very successful. The token could potentially have comparable strength and potential as stock did over a century ago, regarding tangible assets. This could also link many interesting sustainability projects.

Investors could think very personally about how they want to co-finance specific projects in their local area. This could yield investment returns or benefits related to their own energy consumption. For example, they might co-finance a wind farm near their home.

There was a project by a real estate developer who placed a banner with a QR code in front of his properties. By scanning it, one could directly purchase a share in the property. Real estate will remain an exciting sector amid all the social trends we are experiencing.

Anyone who has passed by such a property on their commute for ten years will have a good idea of what might succeed. Due to proximity, often referred to as home bias, there will always be individuals willing to invest. I find it very exciting to enable this through technology.

We are working on a value proposition that fits well into this new world. In recent years, we have discussed how younger generations, who are the focus of wealth transfer, actually invest.

We realised there is still a demographic between the baby boomers and Generation Y and Z, particularly many widows, who inherit a significant amount. This introduces a gender aspect. We found that not only do purchasing decisions differ, but the investment approach will also change.

Several studies indicate that women tend to invest less aggressively. They favor less volatile and risky assets, which has significant implications for portfolio allocation. There is another point emerging from the research.

In the UK, development has been heavily driven by independent financial advisors. Typically, the advisor would meet with the investing husband over tea to discuss the portfolio, but usually did not engage with the wife. When she was present, the eye contact was primarily with the man, not both. Conversations were often one-sided.

Will a widow feel a sense of loyalty to her financial advisor? The switching costs are low, and she might be interested in exploring alternative options.

We are considering how to provide a personalised investment experience that advisors can use to attract these new clients. They will soon lose their old clients, and do not yet know the new ones.

I would say, self-critically, that as an industry, we have yet to establish a clear and simple framework with regulators for defining sustainable investments and providing transparency for investors. This has not been accomplished yet. The fund industry and regulatory bodies share responsibility for this complexity, which has made it challenging for advisors and investors to navigate.

This has been affected by current developments. Economic uncertainty has consistently had a negative impact on exogenous themes, not just ESG. Clients have clear priorities.

In times of uncertainty, security becomes the number one goal. There’s a quick reflex to view sustainability as a potential cost that could diminish returns. We saw this after the financial crisis.

The first significant wave of sustainable investments occurred in 2008, especially in Germany. After the financial crisis, that momentum completely stalled, only to fully unfold three years later after the recovery. Once a global economic recovery occurs following a potential contraction, we can expect a similar resurgence. I hope this happens, as I believe it is conceptually the right direction.

Capital markets essentially involve capital transformation. The real issue is that we have treated certain cost factors as exogenous for decades, if not centuries. Suddenly, companies are realising that these costs can no longer be externalised. It’s a return to reality, where we should have been long ago.

Absolutely. But in the end, the market will likely be the right mechanism to find the price. If using certain resources incurs costs, I can package that and offer it in the market. They are finite, so pricing should emerge based on supply and demand, similar to other asset classes.

Like everyone else, we are very interested in how the new government will advance pension reforms. The potential taxation looming over the industry is a significant concern, with many ideas reportedly in circulation.

If the goal is to present a balanced budget, the effort to subsidise private pension savings during the accumulation and decumulation process may not be very pronounced. We hope it won’t be forgotten that retirement planning is crucial in ageing societies like England and that a liberal framework should be maintained.