Dr Patrick Mbalu’s contribution to Pension Stories focuses on the regulatory framework enabling pension schemes to participate in alternative investments. His perspective highlights the opportunity for trustees to consider a broader range of investments in pursuit of returns and economic impact.

The discussion brings the relationship between regulation and investment decisions into focus. With a framework for participation in place, the next step is understanding how these opportunities can serve each scheme and its members.

The Retirement Benefits Authority’s investment guidelines allow schemes to allocate up to 10% of their total assets to private equity and venture capital combined. This creates room for investment beyond traditional asset classes, with each scheme’s Investment Policy Statement guiding its allocation targets.

Regulatory permission provides a foundation for participation. Turning that opportunity into investment requires trustees to assess suitable funds, understand their risks and align commitments with the scheme’s long-term obligations. The opportunity is to use the available investment space thoughtfully, pursuing member returns alongside the potential to support business growth and economic development.