DC Multi Asset – Discussion
around long enough to have seen politi- cians at all points on the spectrum say that pension money is public money, therefore politicians should decide what to do with it. It is the public’s money and the public trust us to try and provide later life security. If one can do good with that money be- tween now and when the member needs to depend on it, so be it. But we should not be the plaything of politicians. Govern- ment should stick to governing the coun- try and let us govern pension schemes. Lydia Fearn: The government are talking about DC schemes committing to a 5% in- vestment in private equity. That will be in- teresting. The government clearly sees DC money as free wealth to them that will not just level up, but also boost the economy. That is something we are going to have to work with them on. It is not going away, even if we change government next year.
Jenni, you are a DC investment consultant. If one of your clients said the government wants them to fund new bridges and faster broadband, what would you advise? Jenni Kirkwood: I would reflect on what my trustees have said to me, which is to approach with a healthy
degree
Kirkwood: It is definitely more serious this time. If it is well structured and could deliver
then it might be a good of
scepticism. First and foremost, they are making sure they deliver value for members. If what is put forward does that, then of course we are going to be interested. But we are not a nice little piggy bank which is effectively there to be raided to boost the latest polit- ical agenda. There has been hilarity around the table when my trustees meet: “Here they go again.” Trustees are savvy, they talk to each other, there are networks, so I get a feeling they will not be bullied into this. Fearn: But it is being talked about more seriously than I have ever heard it before.
opportunity. Fearn: It is making sure that the people taking the decisions about potentially mandating assets understand the chal- lenges we have been grappling with for years.
Callum Stewart: I picture various potential scenarios here. One is where the govern- ment mandates minimum allocations to the UK’s levelling up agenda. That would create apathy around the overall view of a wider opportunity set, which could impact negatively on DC savers longer term in that it will constrain thinking around value. But it will be more to do with tick- ing boxes than thinking about what the member needs.
I would like to see a world where we are not constrained and UK projects could
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