The United Kingdom's LTAF (Liquid Transport Aircraft Facility) broadens its horizons with an entry into timber industry.
HSBC Pensions has made a strategic investment in Fulcrum Asset Management's Long-Term Asset Fund (LTAF), marking a significant step towards diversifying its assets and improving expected member outcomes.
The LTAF, created in partnership with HSBC, offers access to a wide range of long-term private market assets, including US forestland, private equity, value-add real estate, value-add infrastructure, natural resources, and private credit. This partnership is part of HSBC's broader strategy to invest in innovative solutions that cater to its pension members' needs.
The LTAF, customised for HSBC, is a new fund structure in the UK that enables defined contribution funds to invest in long-term private market assets like infrastructure or private equity. Fulcrum Asset Management plans to launch a commingled version of the LTAF later this year, subject to regulatory approval.
Notably, the LTAF has partnered with Domain Timber Advisors, a subsidiary of Domain Capital Group, to manage its timber investments. This cooperation was announced in September 2023.
Russell Picot, chair of the HSBC Bank (UK) Pension Scheme Trustee Board, commented on HSBC's investment in the LTAF in March. Picot stated that improving expected member outcomes and diversifying assets have been the focus of HSBC's investment strategy.
The investment in the LTAF is intended to drive positive change within the pensions industry. Traditionally, these assets have been underrepresented in DC portfolios due to regulatory restrictions.
While the specific amount of HSBC's commitment to the LTAF has not been disclosed, the investment underscores HSBC's commitment to innovative pension solutions that cater to the evolving needs of its members.
For those interested, an annual conference is scheduled for October 24, 2024, on our website. We look forward to sharing more insights about our investment strategies and the future of pensions.
%20broadens%20its%20horizons%20with%20an%20entry%20into%20timber%20industry.){kind=link}