A new guide on patient capital and other illiquid investments for trustees has today been launched by the Pensions and Lifetime Savings Association.
Launching the guide, The long-term view: Patient capital and illiquid investment at the PLSA’s Trustee Conference today, 6 December, Exchequer Secretary to the Treasury, Robert Jenrick MP, spoke about the work the government is doing to help pension schemes access long-term illiquid investments.
It follows on from the PLSA’s role as part of HM Treasury’s Patient Capital Pensions Investment Taskforce, which looked at reducing the barriers to pension scheme investment in high-growth, innovative firms.
The guide pulls together case studies from PLSA members – both pension schemes and asset managers – who have already been investing in a long-term and patient capital way in illiquid assets and showcases their experiences, successes and lessons learned.
The case studies cover the full spectrum of patient capital approaches including infrastructure, impact investment, private equity and debt. It is hoped that the guide will support and encourage schemes to think about incorporating illiquid investments into their portfolios.
Commenting, PLSA policy lead investment and stewardship, Caroline Escott, said: “Both defined benefit and defined contribution pension funds are ideally placed to reap the benefits of investing in a long-term way that can provide stable cash-flows as well as diversification benefits, to protect and grow the value of individuals’ retirement savings.
“We are pleased to be involved in government initiatives to remove the barriers preventing schemes from investing in illiquid assets – such as venture capital, private equity and infrastructure – and we are delighted the Minister has given the guide his backing during today’s launch.
“This guide – The long-term view: patient capital and illiquid investment – will help schemes consider how and when to invest in such assets. Pension funds consistently tell us that they value hearing what other schemes do, so we have brought together case studies from pension schemes and asset managers to provide practical insights and tips for trustees who want to find out more.”