Aegon has received regulatory clearance for two long-term asset funds (LTAFs) as it continues to add private markets exposures to its defined contribution master trust.
The two pension schemes have contributed to an initial £100m capital raise for the Newcore Social Infrastructure Income Fund.
Torsten Bell used his opening address to the Pensions and Lifetime Savings Association’s Investment Conference to reinforce the government’s drive to scale up pension funds.
Master trust providers plan to back the government’s push for greater investment in productive finance with “outsized” domestic allocations, according to research.
The master trust has bought a 10% stake in Australian infrastructure manager IFM Investors as part of a partnership arrangement to ramp up its private markets allocation.
The People’s Pension plans to invest up to £4bn in private markets by 2030, including a “substantial” UK allocation – but this is reliant on sufficient assets becoming available.
The government’s plans to drive consolidation among defined contribution (DC) pension schemes must keep members’ interests at the centre, according to respondents to a key consultation.
Increasing pension schemes’ allocations to private markets may only boost pension pots by 2% at most, according to the government’s own analysis.
Investors have praised the government’s promised boost to UK investment but urged it to focus on creating opportunities, following this week’s Budget announcements.
Timing of investments into assets such as private equity can play a big role in determining eventual returns, conference panellists argue – so forcing investment will not work.