now:pensions has made its first move into private markets by putting money into affordable housing in the UK.
This investment is focused on increasing the supply of affordable homes, targeting areas where demand is highest.
now:pensions will back three types of affordable housing projects: regulated rentals for those on social housing lists and receiving housing benefit, local affordable rentals for people priced out of the market, and shared ownership for people who cannot afford to buy outright.
Joanne Segars OBE, chair of board of trustees at now:pensions, said: “This is our first investment into private markets.
“Investing in affordable housing presents an opportunity to generate strong financial returns for our members while contributing to a vital social need.
“The now:pensions Trustee will continue to explore opportunities to expand its exposure to private markets, with a particular focus on sectors that offer strong growth potential and align with the long-term needs of our members.”
Martyn James, director of investment at now:pensions, said: “This investment is expected to provide complementary return drivers compared to more traditional parts of the growth portfolio, providing good diversification.
“Our investment strategy remains focused on delivering long-term value, and we are confident that our diversified approach, which includes an ambition of at least a 10% allocation to private markets by 2030, will continue to benefit our members’ retirement savings.”
