When it comes to investments for a pension scheme, a long-term approach is key to making sure we can align to our members’ long-term investment needs for their future – it’s about balancing risk with return.
As Private Market assets are long-term investments, they allow us to do this effectively and support our long-term approach for our members’ futures.
This approach aligns to government thinking, with the Minister for Pensions and Financial Inclusion, outlining his views in the Department for Work & Pensions’ Investment Innovation and Future Consolidation: 'A Consultation on the Consideration of Illiquid Assets and the Development of Scale in Occupational Defined Contribution schemes’.
In his foreword, the minister wrote that, ‘pension schemes ought to be thinking about the assets which help diversify and improve returns to beneficiaries’.
He continued: ‘These same assets also drive new investment in important sectors of the economy – smaller and medium firms, housing, green energy projects and other infrastructure – which deliver the sustainable employment, communities and environments which all of us wish to enjoy’.
At USS, we have been investing in these assets for a long time and are pleased to be able to offer these assets to members in the Investment Builder for the first time. Any proposed investment will only be made within the stringent boundaries of providing value for money to our members and employers.