Pension funds investing in private markets can generate strong growth and support members during their savings journey, according to Jesal Mistry, head of defined contribution investment proposition at Legal and General Investment Management (LGIM).
Speaking at the Pensions and Lifetime Savings Association (PLSA) Investment Conference in Edinburgh this week, Mistry spoke about the benefits of private market investing for pension schemes.
Mistry spoke in favour of real assets investment, which he said has opportunity to provide “strong returns” if pension funds pick the right UK asset.
He added that there is “lots of opportunity” for growth in this asset class in the UK and the government also supports this.
Mistry acknowledged there is “resistance” among pension schemes, especially with the government looking to potentially mandate private markets investment, but he believes this is “because we’re British, and if we are told to do something we just won’t do it”.
However, he said that with the UK element, there is a “double win” in both supporting domestic economic growth but also individuals as part of fiduciary duty.
He said that acting in the “best interest of individuals doesn’t have to be just at the point of retirement”. Pension funds can support members during their journey too, he explained, pointing to potential benefits such as contributing to local communities, creating jobs, and supporting economic growth.
“If you marry those things together with some really strong real assets, infrastructure, real estate then you’ve got a really strong case to engage individuals as well and get them interested,” Misty noted.
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