Schroders secures £500mn mandate for Welsh Pension funds in private markets

As part of a larger strategy by the UK’s largest listed asset management to grow its private markets business, Schroders has been given the green light to invest £500 million of capital from the Welsh pension fund into private enterprises.

The Wales Pension Partnership, representing eight local government pension systems, will entrust the private equity mandate to the FTSE 100 fund business, headed by chief executive Peter Harrison.

For the pension plans, Schroders will manage the £500 million as a separate pool of funds and invest it in a variety of international sectors, including technology and healthcare.

The most recent change comes as Schroders prepares to grow its private investments division in an effort to further diversifying the company outside its conventional line-up of retail and institutional stock and bond funds.

Local pension plans have historically found private equity to be an expensive asset class, but more asset managers are now providing access in recent years with increasingly cost-effective funds.

Read more: https://www.ft.com/content/baa09148-2c0f-4b34-95d2-869fc5fb4b67