Investment Oversight: Managing Resources for Optimal Growth
Taking a Calculated Approach: RLAM's Private Market Strategy
What's the deal with RLAM's moves in private markets? They're not just any asset manager, mate.
David Ricketts, Wednesday 30 April 2025
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Royal London Asset Management (RLAM) has a unique strategy when it comes to private markets. They're all about lining up long-term pension savings with investments that foster economic growth, especially in the UK private market sector.
So, why RLAM? Well, they're aiming to offer diversification benefits and sustainable returns to their clients. They see private assets as a bloody good addition to defined contribution (DC) pension schemes thanks to their low correlation with traditional asset classes.
Key points in RLAM's private markets strategy:
- They've pledged through their parent firm, Royal London, to the Mansion House Accord, which is a commitment to reach a minimum 10% allocation to private markets across main default funds in DC schemes by 2030, with a goal of 5% for the UK market. That's pretty serious, innit? They're investing patient capital into long-term domestic growth opportunities right here in Blighty. [2]
- They're all about responsible investing and taking a long-term, responsible view on matters. Their private market investments are designed to provide both diversification and economic impact, helping out the UK economy and improving living standards upon retirement. [2][3]
- Their Chief Investment Officer, Piers Hillier, acknowledges the challenges like Brexit causing some investor hesitation, but he also spots opportunities. See, tough market conditions can sometimes create chances, and RLAM isn't just jumping in without thinking – they've got a thoughtful, facts-based strategy, not reactive or speculative. [1]
Compared to larger competitors, RLAM seems to favour a more measured, UK-focused approach instead of hitting the global private market scene hard. While lots of other big players are aggressively ramping up their private market allocations with a broad geographic range, RLAM is going for a balance between profits and contributing to the UK economy, aligning with their mutual ownership model and focus on client outcomes. They're not building some kind of monster – it's more about results that align with pensioners' interests. [1]
In short, RLAM's strategy in private markets can be summed up like this:
- A sensible yet substantial private market allocation (minimum 10% in DC default funds).
- A solid focus on UK private market investments to stimulate our domestic economy.
- Integration of responsible, long-term investment principles for the benefit of pensioners.
- A pragmatic and knowledgeable stance towards market factors influenced by geopolitics like Brexit.
- A more focused, client- and economy-centric approach in contrast to some larger players focusing on sheer scale and short-term wins. [1][2][3]
So, RLAM stands out in the UK asset management world as a guardian of pension pots looking to generate sustainable returns through private markets while fostering broader economic and social goals.
In the context of their unique strategy, Royal London Asset Management (RLAM) is investing in private markets, not only for expecting diversified returns but also for fostering economic growth, particularly in the UK market. Their Chief Investment Officer, Piers Hillier, is strategically aligning their private market investments with their pledge to reach a minimum 10% allocation to private markets by 2030, demonstrating a concerted effort to contribute to the UK economy. Moreover, RLAM's strategy encompasses responsible and long-term investment principles to supplement pensioners' interests, distinguishing them from larger competitors focusing on global private market investments and short-term wins.
