UK DB Trustees & Pension Experts - Employer Extraction of Surpluses

In his mission to urge pension funds into private asset investment, pensions minister Torsten Bell recently extolled a Canadian scheme. He reported that the Ontario Teachers' Pension Plan made 30.2% last year in venture capital. In reality, OTPP actually had a lousy year because it lost money on private equity, a much bigger part of the private asset universe (and OTPP's exposure). My suspicion is that ministers do not really understand private capital, beyond thinking that they would not have to spend money on infrastructure and science startups if they can get pension funds to do so instead. As a result they have been making some wild claims for the sector They may also be bedazzled by IRR figures (not, repeat, NOT the same as cash returns on equities). I took a look at all of this in my last FT column, publishing just before the welcome rejection in the Lords of the government's attempt to claim powers to mandate pensions investment in private assets. I'm now planning to take a look at government plans to make it easier for employers to extract DB surpluses. If any Linkedin in connections have any thoughts or research on this, please drop me a line. I'm interested in what you think. Thanks! https://lnkd.in/ePR6DdKf