Pension funds must note risks attached to private market investment


Pensions funds will need to take note of the additional risks involved in private markets, according to Ros Altmann, former pensions minister.

Seventeen of the largest pension providers have pledged to unlock up to £50bn for the economy by allocating more to private markets.

While the industry has welcomed the initiative, some warned it came with new risks.

Neil Wilson, investor strategist at Saxo UK, believed the Mansion House Accord was “just window dressing” adding that investing in private companies was a definite positive but it had a lot of conditions attached to it.

“Fund managers won’t be deviating from their risk models to satisfy some voluntary code. Note that any investments would be ‘subject to fiduciary duty and the consumer duty’ and ‘assuming a sufficient supply of suitable investable assets’.



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