Commenting on today’s ‘open letter’ from the Prime Minister and the Chancellor to pension funds (In an open letter to industry) encouraging them to invest more in long-term and illiquid investments, Myles Pink, partner at LCP said:

“The trustees of DB pension schemes have long term responsibilities to pay their members’ pensions well into the future.  As long term investors of many billions of pounds in capital, trustees are increasingly seeking stable returns from UK businesses and projects that focus on balancing commercial success with long term sustainability and social responsibility.  An “investment Big Bang” would therefore be hugely welcomed by this important community of investors in the UK.  But this must be more than just warm words from government.  Trustees are willing to invest for the long-term but need the government to remove the barriers to this type of investment and to help ensure there are suitable projects to invest in”