Commenting on the DWP Consultation outcome, ‘Facilitating investment in illiquid assets by defined contribution pension schemes’, Callum Stewart, Head of DC Investment says:

“We are supportive of the DWP’s actions to facilitate investment in less liquid assets by DC schemes, although we don’t think excluding performance fees from the charge cap will be the silver bullet. But, we do agree that this is a strong signal to the industry that these should not prevent investment. We would encourage the DWP to continue to review which costs and charges should be included in disclosure requirements and how these interact with other disclosure obligations e.g. those required by the Investment Association.

”Additional reporting requirements should not be added to the already burdensome Chair’s Statement, and it is for the DWP to instead consider whether these add meaningful value and whether there are more natural homes for this transparency. For example, there is already a requirement for Trustees to report on how their policies set out in the Statement of Investment Principles are being implemented through Implementation Statements.”