The new fund builds upon a similar fund launched for HSBC’s defined contribution scheme earlier this year.
The WS Fulcrum Diversified Private Markets LTAF builds upon a fund launched earlier this year for HSBC’s DC pension scheme. Scheduled for launch on 29 November, the new fund is open to the wider pension market as well as charities, endowments and wealth managers.
Assets are sourced via a “panel” of specialist private markets managers that Fulcrum has built up over several years. Each manager will contribute assets to a diversified portfolio overseen by Fulcrum.
The open-ended fund will seek to invest in areas including real estate, infrastructure, natural resources, alternative credit, private equity and venture capital. While it will be a global fund, Matthew Roberts, head of Fulcrum Alternative Solutions, told Pensions Expert the portfolio would have a UK tilt.
“We’re aware of the political environment around UK investing, but the main driver for us is to do with us having observed some appealing valuations in private markets in the UK,” he said. He added that some assets were more expensive when sourcing from overseas compared to UK equivalents.
Roberts described the fund as a “bridge” to the specialist managers selected by Fulcrum.
“Many of the institutions that have struggled to access private markets probably aren’t going to want to have lots of different managers to monitor themselves,” he explained. “A number of investors we have spoken to wanted help with this.”
Roberts said Fulcrum had conducted significant due diligence on all external managers on its panel, both with regards to investment capabilities and operations.
Once on the panel, managers can then contribute ideas within pre-agreed parameters, with Fulcrum approving investments on a case-by-case basis based on wider portfolio construction considerations.
The fund charges a flat percentage fee but does not levy any performance-related fees. It is being seeded by an unnamed UK charity endowment.
Further reading
HSBC adds private markets to DC scheme (19 March 2024)
Aviva converts climate strategy to LTAF (20 March 2024)
LifeSight to back private equity LTAF launch (15 April 2024)
L&G unveils DC target-date range and private markets LTAF (1 July 2024)
