Interest in DB superfunds is rising, with nearly two thirds of pension professionals saying they are more likely to consider them than they were 18 months ago, according to polling by the Society of Pension Professionals (SPP).
These findings come from an SPP event, where 250 industry delegates were asked whether they were now more likely to consider a superfund as part of their endgame solutions. While 65 per cent responded positively, 16 per cent said they would be less likely to consider one, and 19 per cent remained unsure.
This growing confidence comes as the regulatory landscape becomes clearer following the Pension Schemes Bill, alongside increased market activity. Clara Pensions has completed a number of superfund transactions, while TPT has confirmed its intention to enter the market, with further entrants expected.
Additional polling at the event found that more than 90 per cent of respondents expect increased competition and innovation within the superfund sector.
Jonathan Hazlett, managing director at Open Trustees and chair of the SPP event, said DB superfunds had moved “from concept to reality”.
“It’s no surprise to see that so many pension professionals are now more likely to consider superfunds as an option,” he said. “There is also widespread recognition that greater innovation and competition is inevitable. Against such a backdrop, the future for the superfund sector looks bright.”