The People’s Pension, one of the largest independent master trusts in the UK, is to start investing a significant proportion of the £31bn of assets it manages into private markets later this year, with a target to grow this allocation to £4bn by 2030.
According to a recent release, a substantial part of this new allocation of assets could be deployed in the UK, if assets are available that meet the return requirements.
To support the process, a Private Markets specialist will soon be appointed.
It is expected that over time The Trustees of The People’s Pension will target allocating up to 10% of growth pool assets – or £4bn – by 2030, initially in assets such as 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.
The People’s Pension already invests 14% of its members’ savings in UK-based assets within its growth stage default fund.
Mark Condron, Chair of The People’s Pension Board of Trustees, said: “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.”
Rachel Reeves MP, the Chancellor of the Exchequer, 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.”
