It is good news that Clara will be investing client money over time. That gives opportunity for growth for members without conspicuous downside to their pensions (only perhaps the loss of upside in the form of surplus lost if investments go down.

For employers there is the benefit of handing over a pension scheme to be managed with a view to the best outcome of the member through investment, albeit an insurer awaits in the future so there will be security for them of a reflux of pension problems (if you haven’t had reflux – then believe me it is not something you want).

Clara have a way to go to get to £3bn but if they have a healthy pipeline and a tailwind from a positive Pension Bill – and subsequent Act, what can stop them. The need for consolidation is obvious and if the consolidation is to the benefit of members, employers and Clara’s backers then the target is good news for Britain.

I hear of strong pipelines from others. Though not operating a Clara style Superfund but providing capital backing to DB schemes wishing to run on, Pension SuperFund is doing stout work and there are others in the market offering support. It will be interesting to see how the changes in asset values resulting from American Tariffs,  impact corporate and trustee attitudes to their DB pension responsibilities.

Putting aside the negative impact of Tariffs, the mood amongst trustees seems much more positive towards the future and I hope that the speech of Torsten Bell in Edinburgh and the subsequent noises from TPR and DWP will encourage more pension schemes to invest in productive finance as they set their sights on the long-term.

Meanwhile, we have the fruits of consolidation in the DC market. Nest made positive moves towards investment in private markets when purchasing 10% of IVM investors. Peoples have started afresh with a more positive approach to productive finance and many of the smaller master trusts are showing a willingness to look at the future with a pension mentality (rather than personal savings).

Clara can be applauded, I hope that Simon Lee pulls it off.

News on private market funds

Now is a tricky time for Private Equity Funds as the FT reports this (Monday) morning

Large institutional investors are studying options to shed stakes in illiquid private equity funds after the rout in global financial markets pummelled their portfolios, according to top private capital advisers.

The calls by pensions and endowments seeking ways to exit their investments, probably at discounts to their stated value, are a bad sign for the $4tn buyout industry. Industry giants such as Blackstone, KKR and Carlyle all saw their stocks plunge between 15 per cent and more than 20 per cent on Thursday and Friday.