Life-wrapping funds to make innovative investment strategies available to more UK pension schemes

New and innovative investment strategies are providing UK pension schemes with increased opportunities to meet their funding requirements and offer members more choices about how their money is invested.

Many members, and the UK government, want to see pension assets used to support the drive to net zero and other ESG initiatives. We’re also seeing increased demand for pension assets to be invested in long-term, illiquid infrastructure projects, venture capital, private assets, structured capital and other complex structures.

The pace of managers developing exciting new strategies to meet these demands is ever increasing. So, for large pension schemes, which can deploy significant capital to invest in bespoke funds, this presents huge opportunities.

But for most of the UK’s mid-size and smaller schemes, high minimum investment limits, or lack of liquidity, can put these strategies out of reach – or does it?

UK life company structures offer an effective means to pool funds making them ideal for pension schemes due to their flexibility, tax efficient status and compliance with the permitted-links regime. But for many asset managers the cost, capital reserving and regulatory burden of creating their own life company structure are prohibitive.

That’s where Mobius Life comes in. We effectively provide access to our life company to asset managers to life wrap segregated portfolios which are then available to investors on the Mobius Life platform. These funds can include bespoke portfolios, created for a single pension scheme, or pooled funds available to all schemes.

Mobius Life already works with multiple asset managers to make our funds available to UK pension schemes in a cost-effective and flexible manner. The access to the Mobius Life company for asset managers means trustees and consultants can consider a far wider range of strategies – many of which can be bespoked to their exact requirements.

Using Mobius Life to life-wrap investment strategies offers asset managers significant cost advantages, as well as taking away the regulatory burden and need for regulatory capital.

Life-wrapping funds on the Mobius Life platform offers more choice to investment consultants, pension schemes and their members, while offering fund managers an effective way to distribute their products to more schemes.

If you would like to find out more or discuss how we can life wrap a fund for you, please contact us today.

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