Key Takeaways
- • Pensions Management Institute (PMI) chair Ruston Smith argues the UK faces an "investability problem" rather than a pension capital problem, saying the priority is improving access to attractive private market investments rather than meeting pension allocation targets.
- • Smith calls for an effective UK investment "shop window" to help pension schemes identify opportunities in infrastructure, real assets and private companies.
- • Smith points to the City of London Corporation's recently launched InvestConnect platform as a potential catalyst for connecting institutional investors with suitable UK investments.
- • Smith stresses that stronger governance, operational capacity, access to effective advice, trustee capability, high-quality reporting and long-term thinking are essential for schemes to turn investment intentions into decisions.
Summary
Pensions Management Institute (PMI) chair Ruston Smith has argued that the UK's challenge in directing pension capital into domestic assets is one of investability rather than the availability of capital. In a new blog, Smith said the UK should improve access to attractive private market investments instead of focusing on pension allocation targets. "The UK doesn't have a pension capital problem. It has an investability problem. Private markets should not and need not be a policy lever to be pulled," he said.
Smith said appropriate, attractive UK private market opportunities should form a natural part of long-term pension fund allocations, particularly for trustee boards of schemes with the appropriate skill, experience and scale. He called for an effective UK investment "shop window" to help schemes identify opportunities in infrastructure, real assets and private companies. He argued that stronger governance, operational capacity and access to effective advice would be essential to helping schemes convert investment intentions into actual decisions.
Smith also highlighted trustee capability, high-quality reporting and long-term thinking when assessing private market investments, areas he said are being championed by The Pensions Regulator.
Smith pointed to the City of London Corporation's recently launched InvestConnect platform as a potential way to help institutional investors identify and access suitable UK investments. The initiative follows calls from Dame Susan Langley for stronger connections between institutional capital and projects capable of supporting economic growth. "The City of London Corporation's InvestConnect has the real potential to act as a critical catalyst in connecting opportunity to institutional investment," Smith said.
Bronek Masojada, incoming Lord Mayor of the City of London, said the corporation identified a barrier between pension capital and investment opportunities and developed InvestConnect to address it. He described the initiative as "a real catalyst in connecting opportunity to investment" that could grow the UK economy while growing UK pension members' savings.
Smith said appropriate, attractive UK private market opportunities should form a natural part of long-term pension fund allocations, particularly for trustee boards of schemes with the appropriate skill, experience and scale. He called for an effective UK investment "shop window" to help schemes identify opportunities in infrastructure, real assets and private companies. He argued that stronger governance, operational capacity and access to effective advice would be essential to helping schemes convert investment intentions into actual decisions.
Smith also highlighted trustee capability, high-quality reporting and long-term thinking when assessing private market investments, areas he said are being championed by The Pensions Regulator.
Smith pointed to the City of London Corporation's recently launched InvestConnect platform as a potential way to help institutional investors identify and access suitable UK investments. The initiative follows calls from Dame Susan Langley for stronger connections between institutional capital and projects capable of supporting economic growth. "The City of London Corporation's InvestConnect has the real potential to act as a critical catalyst in connecting opportunity to institutional investment," Smith said.
Bronek Masojada, incoming Lord Mayor of the City of London, said the corporation identified a barrier between pension capital and investment opportunities and developed InvestConnect to address it. He described the initiative as "a real catalyst in connecting opportunity to investment" that could grow the UK economy while growing UK pension members' savings.
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