Smart Pension has launched a new investment strategy that will see 15 per cent of its main growth fund invested into private markets — exceeding the requirements of the Mansion House Accord.
This new investment strategy will take be implemented over the next 12 to 18 months and will build on Smart Pension’s existing commitment to invest 5 per cent of its default in private credit, with an additional 5 per cent invested in private equity and venture capital, and a further 5 per cent in renewable energy.
Smart Pension says this means that around £4bn of its projected AUM will be invested in private markets by 2030.
This follows its recent decision to sign up to the Mansion House Accord, a voluntary agreement which has seen 17 DC schemes commit to invest 10 per cent of their main default into private markets, of which half will be in UK assets.
Smart Pension is working with selected investment managers, who have built bespoke investment solutions for these new strategies. Smart Pension says these have been designed without the need for high levels of liquidity, nor will it be using a Long-Term Asset Fund (LTAF) structure. These solutions will be accessed directly through its investment platform provider Mobius Life.
Smart Pension says that as a result of this new strategy around 1.5m of its members will benefit from the opportunities to invest in critical growth sectors in the UK, including life sciences, university spin-offs, and cutting-edge deep tech.
Smart Pension CEO Jamie Fiveash says: “As one of the largest and fastest growing workplace pension providers in the UK, we are proud to commit significant capital to support large-scale projects with innovative British businesses that will drive sustainable growth for the country.
“Private markets can provide opportunities for greater and more sustainable returns for savers because they include long-term projects that have previously been inaccessible to our sector.”
Minister for Pensions Torsten Bell adds : “I welcome Smart Pension going above and beyond the voluntary Mansion House Accord to deliver for savers. This announcement will drive more investment in infrastructure and high-growth businesses across the country, delivering growth for local communities and better returns for savers.”
