Investors rush to grab piece of US$1.8 trillion UK pensions pie

In a so-called “capital-backed journey plan”, investors provide a pension scheme with extra capital, in return for any investment returns above an agreed level after a set number of years. — Reuters

Hedge fund Davidson Kempner and asset manager M&G are racing to be among the first firms to inject capital to boost Britain’s £1.4 trillion pension sector, industry sources say.

In a so-called “capital-backed journey plan”, investors provide a pension scheme with extra capital, in return for any investment returns above an agreed level after a set number of years.