PensionBee, a leader in the consumer retirement market, has issued a statement following the decision by large pension funds to sign up to the government’s voluntary pact, designed to encourage further investment in UK infrastructure.
Lisa Picardo, Chief Business Officer UK at PensionBee, said:
“Pension schemes should be empowered to make sound, independent decisions based on what delivers the best outcomes for their members.
Investment decisions should be driven by long term value, transparency and suitability, not political pressure.
The voluntary pact made by many of the UK’s largest pension funds suggests that there is real willingness to invest in private asset classes or UK assets.
If this genuinely offers an opportunity for strong returns with sufficient liquidity, these asset classes will attract capital without the need for compulsion.
However, the threat of mandation forcing schemes to allocate capital is deeply concerning, especially when it relates to private markets assets, where returns can be opaque, costs can be high and liquidity is limited.
Whilst we support efforts to boost UK investment and growth, and to improve returns, legislation must not override a schemes’ duty to act solely in the best interests of its members.
That principle must be respected and upheld.”
