An update on pensions… How do we get more IFAs and wealth managers to engage with this space – do we actually still need them?

2 thoughts on “Playing the long game

  1. At the last Gathering, we had a session facilitated by Karen Shackleton which was around encouraging and enabling pension funds to allocate 5% of their assets to social impact investing.

    Pensions for Purpose was borne out of the discussions from the Gathering. This is a thought leadership collaborative aimed at educating pension executives and trustees on what impact investing actually is. It also showcase how pension funds are allocating to impact.

    Globally and in the UK, we are seeing pension funds start to think about how they can allocate to impact. More often than not the journey starts with signing up to the UN PRI, considering how their investments are contributing to climate change, how the businesses they are investing in are doing in Environmental, Social and Governance issues.

    Few pension funds are properly allocation to impact (investing in C – to borrow the IMP language) but more are thinking about it. We have seen a number of pension funds allocate to outcomes finance funds and private equity funds that are very much looking for financial as well as impact returns.

    If we want to unlock the scale of capital required to help solve the housing crisis in the UK, then we will undoubtedly need pension funds to allocate capital to impact.

    A session that will help come up with how we can help pension funds allocate to impact. They need scale and cannot trade off return for impact. This may led us to conclude that what we do is irrelevant to them. Pension funds have allocated to impact investing in emerging markets. Are there incentives that can be put in place to encourage them? Tax relief, guarantees, soft capital or grant as first loss?

    This is the initiative that came out of the last Gathering – http://www.pensionsforpurpose.com/

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