The People’s Pension has commissioned leading investment expert, Toby Nangle, to explore how workplace pension schemes might best approach investing in private markets, in line with Government ambitions.
The Chancellor has identified Canadian pension funds – with their large allocation to private market assets – as a potential model for UK schemes. She argues that a higher allocation to such assets would deliver a win-win for the country: better returns for savers and more investment in the real economy.
This paper examines how such a move would work in practice and how pension schemes can ensure that they are able to best maximise the benefit of such investments on the behalf of their savers. The cost of externally managing a 10% allocation of total Master Trust assets to private markets would be high – as much as £1.5bn a year.
This paper argues that developing a high-functioning direct internal private market management capabilities could reduce this cost by hundreds of millions of pounds.
Download the ‘Achieving critical mass: investing in private markets’ research report
Download the ‘Achieving critical mass – investing in private markets’ report