Smart Pension, one of the UK’s workplace pension providers, launches its new investment strategy, which will see 15% of its flagship growth fund invested in private markets.
This commitment supports the UK Government’s efforts to “encourage investment into national infrastructure and private companies, and reflects Smart Pension’s confidence in the wider British economy.”
This contribution will represent up to “£4bn of Smart Pension’s projected assets under management by 2030.”
As a result of Smart Pension’s commitment, its 1.5 million members will enjoy enhanced opportunities to “benefit from UK assets across critical growth sectors, including life sciences, university spin-offs, and cutting-edge British deep tech.”
This pledge, which will be fully implemented within 12 – 18 months, will see Smart Pension build on its “established 5% commitment to private credit, with an additional 5% invested in private equity and venture capital, and a further 5% invested in renewable energy.”
Smart Pension recently joined sixteen of the largest workplace pension providers in the UK to “invest at least 10% of its defined contribution (DC) default funds in private markets as part of the Mansion House Accord.”
Today’s announcement goes significantly “beyond that commitment, signaling Smart Pension’s confidence in private markets and the UK economy.”
Jamie Fiveash, CEO of Smart Pension, said:
“As one of the largest and fastest growing workplace pension providers in the UK, as well as a UK fintech growth story, we are proud to commit significant capital to support large-scale projects with innovative British businesses that will drive sustainable growth for the country. Private markets can provide opportunities for greater and more sustainable returns for savers because they include long-term projects that have previously been inaccessible to our sector. We are happy to be one of the UK master trusts leading the way in this space and leave a legacy not only for our members, but also for the country’s critical infrastructure and businesses.”
Minister for Pensions Torsten Bell said:
“I welcome Smart Pension going above and beyond the voluntary Mansion House Accord to deliver for savers. This announcement will drive more investment in infrastructure and high-growth businesses across the country, delivering growth for local communities and better returns for savers.”
The investment managers selected for the new strategies “have built bespoke investment solutions for Smart Pension.”
Working with Mobius Life as Smart Pension’s investment platform provider, the funds have been designed “without the need for high levels of liquidity, nor the need for a Long-Term Asset Fund (LTAF) structure.”
Launched in 2015, Smart Pension now exceeds “£6bn in Assets Under Management (AUM) and serves over 1.5 million members and more than 90,000 employers.”
It is reportedly powered by Keystone, Smart’s global savings and investments technology platform.
Aquiline, Barclays, Chrysalis Investments, DWS Group, Fidelity InternationalStrategic Ventures, J.P. Morgan, Legal & General Investment Management, MUFG and Natixis Investment Managers are “all investors in Smart Pension.”