DC charge cap performance fees scrapped to spur investment

“While the cap was brought in to ensure people got good value from their pension scheme, cost is not the only way of determining value,” she added.

Tim Middleton, director of policy and external affairs at the Pensions Management Institute, described the reforms as “a pragmatic step” towards making illiquid investment more appealing for DC schemes.

“However, we should not lose sight of trustees’ responsibilities to members,” he said.

“Their priority is to identify appropriate investment opportunities for members rather than to support specific sectors of the economy.

“Ultimately, if this innovation is to succeed it will be because science and technology would represent an appropriate investment and a legitimate alternative to existing assets.”

Alex Janiaud is deputy editor at Pensions Expert, FTAdviser's sister publication