Commenting on the DWP consultation “Facilitating investment in illiquid assets by defined contribution pension schemes”, Callum Stewart, Head of DC Investment, says:

“It is good to see the DWPs continued commitment to facilitating investment in illiquid assets with the publication of its consultation today. Investing in illiquid assets provides strong opportunities to improve financial outcomes for DC savers as well as have an impact on the world around us. It is a golden opportunity to create benefits for DC savers, and engage them more positively in how their pension is invested, while at the same time having an impact on the world around them.

”We are keen to see the government and the industry focus not just the long-term financial considerations, but also the potential to have positive real world impacts from illiquid investments. So far, discussions around value have centred too heavily on financial aspects, particularly costs and charges. Indeed, this consultation does not make clear reference to the potential to have positive environmental or social impacts from illiquid investments. It’s time to update the way we think about value to ensure that this is compatible with future DC saver and their real world needs.”