Philip Aldrick and Katherine Griffiths discussed the industry’s reaction to the UK Department for Workk and Pensions to invest in potentially risky illiquid assets. They quote the experts in infrastructure investment have told Hunt his proposals would put members’ retirement savings at risk unless a proper valuation framework is developed. Local government pension plan trustees have also warned they are reluctant to “pool” assets into larger independently managed pots of money as doing so would leave them responsible for investment losses without control of the funds.
“EDHEC has proposed a valuation system that it believes would make infrastructure a more reliable asset class for long-term investors like pension funds. The UK’s Financial Conduct Authority is also looking into valuations of private market assets to improve transparency and disclosure.”
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