The UK’s pensions minister is encouraging outlined contribution (DC) pension fund managers to take a position extra in non-public markets.
In an interview with the Monetary Occasions, Torsten Bell mentioned that he was in “very energetic discussions” with DC fund managers about rising their voluntary allocation to personal property, though he added that he was “encouraging investing in a wider vary of property, not instigating”.
The federal government’s pension funding evaluation, which was launched by Chancellor Rachel Reeves in July, is about to be revealed later this spring.
Learn extra: L&G consists of non-public markets in default DC pension scheme
Bell mentioned it could present “finish level readability” on how coverage reforms will enhance funding in productive property.
UK pension funds have comparatively low allocations to personal markets, in comparison with different international locations like Australia, though curiosity and demand is on the rise.
The Monetary Conduct Authority final yr set out new guidelines for Lengthy-Time period Asset Funds (LTAFs) – that are designed to encourage funding in long-term, illiquid property – to make it simpler for DC traders to entry non-public markets investments.
Asset managers together with M&G Investments and Aviva Traders have already launched automobiles that can goal the DC market.