As an insurance executive, you are always looking for ways to grow your business and deliver benefits to your clients. One way to achieve this is by increasing investment in unlisted equities. The UK’s Mansion House Compact is a voluntary expression of intent by defined contribution (DC) pension funds to allocate at least 5% of their default funds to unlisted equities by 2030. By signing up to this compact, you can unlock up to £75bn of additional investment from DC and Local Government Pension Schemes (LGPS) to help grow the UK economy and deliver benefits to savers.

Cushon, a pension and savings fintech, has recently become the 11th signatory to the Mansion House Compact. They allocate 15% of their existing default funds to private markets, including unlisted equities, infrastructure, real estate, and natural capital. Of this 15%, Cushon targets between 25% and 45% invested in unlisted equities, meaning its current total default fund target allocation to unlisted equities is between 3.75% and 6.75%. Examples of Cushon’s private equity investments include Adler, a provider of solar power systems and e-charging infrastructure, and Igloo, an insurtech enabling climate-related micro-insurance at scale.

If you are interested in increasing investment in unlisted equities, here is a step-by-step guide:

1. Understand the benefits of investing in unlisted equities: Investing in unlisted equities can provide higher returns and build pensions to be proud of. By investing directly in real-world assets in the UK aligned to the values of your clients, you can better engage them with their savings.

2. Sign up to the Mansion House Compact: By signing up to the Mansion House Compact, you can commit to allocating at least 5% of your default funds to unlisted equities by 2030. This will help grow the UK economy and deliver benefits to savers.

3. Allocate funds to private markets: Allocate a portion of your existing default funds to private markets, including unlisted equities, infrastructure, real estate, and natural capital. Cushon allocates 15% of their existing default funds to private markets.

4. Target unlisted equities: Target between 25% and 45% of your private market investments in unlisted equities. Cushon targets between 25% and 45% invested in unlisted equities.

5. Invest in real-world assets: Invest directly in real-world assets in the UK aligned to the values of your clients. This will help you better engage them with their savings.

By following these steps, you can increase investment in unlisted equities and deliver benefits to your clients. If you are interested in learning more about how parametric insurance can help in these cases, get in touch with Riskwolf. With Riskwolf, you can turn real-time data into insurance. Using unique real-time data and dynamic risk modelling, we enable insurers to build and operate parametric insurance at scale. Simple. Reliable. Fast.

Read more about Cushon becoming the 11th signatory to Mansion House Compact here.