A pensions industry working group, convened by the Bank of England, the FCA and HM Treasury, has published new guidance designed to help DC pension schemes understand the key considerations and risks around investment in less liquid assets within default arrangements. The Productive Finance Working Group, which produced the guidance, consists of industry bodies including the Alternative Investment Management Association (AIMA), the ABI, the Association of Investment Companies (AIC), the British Private Equity and Venture Capital Association (BVCA), the Investment Association (IA) and the PLSA along with around 20 large DC pension schemes, investment managers and consultants.

Hannah Gurga, ABI Director General, commented: “The creation of the guides is an important step to help pension professionals understand the opportunities and challenges of investing in illiquid assets, which can provide greater diversification and support the UK in reaching net-zero objectives. We are proud to play a part in this industry-wide initiative and look forward to continuing to work with the Productive Finance Working Group to help unlock the sector's full potential for investing in the UK's long-term future.”