The People’s Pension has revealed plans to step into private market investment in the months ahead.
The body is one of the biggest independent master trusts in the UK, serving more than 6.8 million pension savers and managing £31 billion in assets.
It is set to start investing a significant proportion into private markets later this year, with a target to grow this allocation to £4 billion by 2030, initially in assets such as infrastructure and real estate.
The figure is based on projections around the total assets under management in the years ahead.
A substantial part of the new allocation of assets could be deployed in the UK, if assets are available that meet the return requirements, the People’s Pension said.
The scheme has said its allocation will hinge on it being able to access a “dependable pipeline” of good quality 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.
This latest announcement follows the scheme’s statement last year that it has now reached the scale to deploy meaningfully into private markets.
Chancellor Rachel Reeves 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.”
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 the benefit of the wider economy in which they work.”
Patrick Heath-Lay, chief executive officer of People’s Partnership, which provides the People’s Pension, said: “We’re at a pivotal time for UK pensions with the Government indicating a direction of travel toward scale and value for savers.
“As an independent £31 billion master trust, without shareholders, we believe that now is the time to increase our investment in private assets for the benefit of our savers and the growth of the UK economy. The People’s Pension has a vital role to play in this exciting plan for the future of UK retirement savings.”
Dan Mikulskis, chief investment officer of People’s Partnership, said: “In order for us to invest in private markets over this period it’s critical that the wider investment community, with support of the Government, provide a dependable pipeline of investable opportunities which deliver good value for our 6.8 million savers.”
