The People’s Pension has confirmed it is targeting a £4bn investment into private markets by 2030, with a substantial weighting to UK assets.
In order to facilitate this the company says it will appoint a private markets speciation shortly, and will also be creating a research capability.
It confirmed that a substantial part of this new allocation of assets could be deployed in the UK, if assets are available that meet the return requirements. The People’s Pension already invests 14 per cent of its members savings in UK-based assets within its growth stage default fund.
The announcement was welcomed by the Chancellor Rachel Reeves.
The trustees of the master trust confirmed they are targeting a private market allocation of 10 per cent of the growth assets, and will initially be looking to invest in infrastructure and real estate.
The scheme has said this allocation will be dependent on it being able to access a ‘dependable pipeline’ of good quality investable assets that meet its return requirements at a fee level that leaves the benefits in the hands of members, and with the right operational structures in place.
Responding to this announcement Reeves said: “Growing the economy is the number one mission of the Government. This public commitment from one of the UK’s largest independent pension master trusts to invest here, at home in Britain, will help drive economic growth and support our milestone of improving living standards across the UK.”
Mark Condron, chair of The People’s Pension Board of Trustees says: “What we are announcing today is a significant step forward on the path towards The People’s Pension investing in private markets, including key parts of the UK economy.
“We are demonstrating how a responsible asset owner, operating at the right scale, can invest in both the best interests of its members and to the benefit of the wider economy in which they work.”
People’s Partnership chief investment officer Dan Mikulskis said: “As one of the fastest growing asset owners in the UK, our in-house investment expertise has grown significantly over the last 12 months and this journey will continue with the imminent appointment of a private markets’ specialist, broadening our investment reach.
“In order for us to invest in private markets over this period it’s critical that the wider investment community, with support of the Government, provide a dependable pipeline of investable opportunities which deliver good value for our 6.8 million savers.”
People’s Partnership chief executive officer Patrick Heath-Lay adds: “We’re at a pivotal time for UK pensions with the government indicating a direction of travel toward scale and value for savers.
“As an independent £31bn master trust, without shareholders, we believe that now is the time to increase our investment in private assets for the benefit of our savers and the growth of the UK economy.”
