Managers of UK workplace pension schemes, that have more than 10m savers, are often unable to back early-stage companies, through investment in venture capital funds, because of fees which risk exceeding a 0.75 percent ceiling on charges.
But seen retirement incomes for younger office pension savers might find a boost by investment in venture capital.
The BBB, which helps locate finance for growing businesses, has made recommendations to boost venture capital and growth equity investment, for example encouraging supervisors to change their fees.
So, I can see the case for modifying the charging arrangement to adapt investment in options within the charge cap. However, this really is early days.
With a small exposure to higher growth companies are going to be a good thing.
Individuals will ask’why on earth do you do exactly what Woodford was performing for retirement funds.