Signatories to the Mansion House Compact have doubled investment in unlisted equities within their defined contribution (DC) default funds, says Gill Wadsworth, noting that the numbers doubled in the past two years, growing allocations from GBP0.8 billion to GBP1.6 billion out of a total value of GBP268 billion.
The figures released by the UK’s ABI will be welcomed by the government which is targeting pension assets as a source of capital to realise domestic growth ambitions, Wadsworth writes.
Yvonne Braun, Director of Long-Term Savings Policy at the ABI, says: “This year’s progress is testament to the continued efforts of the Mansion House Compact signatories to deliver better results for savers by investing in unlisted equities.
However, Braun warns that more must be done to reconfigure investment decision-making across the DC sector, shifting the focus from cost to value.
Also coming with a health warning is Matt Pells, Product Manager, Transfer Agency, Bravura Solutions, who writes in this week’s In My Opinion that investor appetite for private credit, infrastructure and real estate is accelerating, driving rapid uptake of hybrid and interval fund structures.
“Private markets may power the next phase of growth globally – but can fund groups meet the operational and liquidity challenges that come with it?” he asks. Read the piece for his recommendations.
Your eyes were not deceiving you, we have extended the voting for the annual Institutional Asset Manager service provider awards by one more week so they close today! Get your votes in now, using this link.
Beverly Chandler, Managing Editor, Institutional Asset Manager
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