UK minister in ‘active discussions’ with pension funds to invest more in private markets

Open the Editor’s Marking Free

Rulla Khalaf, the FT editor, chooses its preferred stories in this week’s news.

The British Minister of Pension pushes pension funds to invest more in private markets, as it is part of the broader plans for Great Britain’s pension assets … 3rd pounds.

Torsten Bell said in the financial times that he was in “very active discussions” with the heads of the investment schemes, which cover most of the employees in their voluntary commitment to private assets.

In the interview, the government said in an interview that the government “encourages investing in a wider range of assets.”

The final report on the review of pension investments, which began in July, will take place later this spring, and will provide “final reforms”, he added investments on effective assets.

The British pension industry has historically reluctant to provide its allocations in private markets. The study of the new financial, thinking tank, last year it turned out that the British DC pension funds invested 2% of total assets in private capital and 2 percent of infrastructure.

The market in Australia, which has carefully monitored the policy, has contributed to the DC pension funds in 6% private equity and infrastructure.

In 2023, 11 pension funds were signed by a private house of the time conservative government, in which they promised to invest at least 5% of their standard assets in private markets.

But the call signaled this target could become more ambitious in a compact update published this summer.

“Each percentage of points, when this contribution can return not only for savings, but also to promote economic growth,” he said that the government would not present investments in British private markets.

However, some of the pension industry figures are skeptical that more investments in private markets will lead to higher revenues and point to the relative absence of transparency in private markets.

The forecasts published by the government’s Actuaries in the last fall, which assess financial risk for the public sector, assessed it Push to get the British pension funds In order to invest more in private markets, they will return only 2% to a 30-year period.

To the question whether the pension industry is doing enough to support the investment in the field of defense, which has resumed to pay for higher military spending by European countries.

“Pension funds will already want to include a wide range of assets, and it will include protection,” he added, although he refused to say if he was going to return to the part of his assumed part.

The city of London Corporation, a local self-government body of a square mile confirmed the FT that last week it expand the number of signatory And both investigations in defense were both studied as part of a compact update.

In Edinburgh and Life Savings Association, the call of the Public Pension Scheme of 392 billion pounds in England and Wales to work with funded vehicles to work with funded vehicles.

This is though calls from leaders Local Self-Government Pension Scheme And other numbers of the pension industry so that the government will allow more time, then the recommendations have been completed after the proposals.

Currently, eight “pool” manages money on behalf of 86 local bodies. Swimming pools are responsible for pension savings of 6.7 million people who work mainly or mainly work in the public sector.

Three of the swimming pools – entrance in the South and East England, North LGPS and Wales Pension Partnership, are being established as joint commissions and will have to establish FCA so that they can continue to operate.

Bell said that “confident” they would have enough time to do this.