Cadro is a modern investment manager with a deep expertise in private markets.
DC pension money has, to date, generally avoided investment in private markets, and Cadro’s Co-founder and President Jordan Buck believes that consequently, members are missing out on the chance to invest in 99.9% of companies in the world, including many companies at the forefront of tech development and innovative science. Cadro’s mission is to overcome that limitation.
In the last thirty years the whole world has changed; technology, trends and markets have changed with it – and Cadro believes that the way we invest ought to change as well. In those thirty years we’ve seen a huge growth in the number of companies that are transforming the world, but many are still privately funded.
In the film we hear from Kerry Baldwin of IQ Capital, a deep-tech investor who provides an opinion on the opportunities private markets can offer investors: the UK venture sector is the most developed in Europe, and returns from UK venture are often well beyond those from public markets.
While there is a widely held belief that private markets can be riskier, Gary Smith, a Cadro Senior Adviser, believes that to ignore private markets is in itself a risk. Many private companies offer growth potential, diversification opportunities, and enable chances to invest in the future of this world and, pertinently, the future into which DC pension members will be retiring.
Cadro comprises specialists who want to help guide new investors in accessing these transformational business opportunities. They understand what challenges trustees face, which is why they’re seeking to inform, educate and help anyone with an interest in private markets.
They believe that we currently face a generational opportunity, and that now is the time for trustees to act.
Responsible, impactful investing is very important to the Clwyd Pension Fund. On recognising that private markets offered investment opportunities not found on public markets, they became one of the first funds to invest in private markets within the LGPS. It's now Clwyd's investment ethos that long-term returns can be made whilst making a positive societal impact.
Today, nearly 30% of Clwyd's assets are invested in private markets, private equity, private debt, property, forestry and agriculture. In seeking investment partners, Clwyd look for aligned objectives and mutual core beliefs in energy transition, waste reduction, social and health care, education and affordable housing - both worldwide as well as in the UK. In addition, Clwyd are proud to invest in their local Welsh economy through investments in local companies or infrastructure, aiming to contribute to the global effort of battling climate change whilst simultaneously creating jobs in the local area.
Capital Dynamics, a private assets manager, work closely with Clwyd to help them achieve their goals in the clean energy sector.
With their assistance, Clwyd are in the process of investing £50m they committed to clean energy projects in Wales, whilst a large-scale cross-fund initiative is in early stages of development.
Communication is an integral part of the fund's operation: Clwyd want their members to understand and feel proud that their contributions are part of a drive for positive change.
For more information visit: https://mss.clwydpensionfund.org.uk/
Hambro Perks is a recognised expert in venture and growth capital, with investment activities across technology markets in areas such as fintech, healthcare, environmental technology and life sciences. In this film, we discover how Hambro Perks offers pension funds a wide range of investment opportunities in exciting start-up and growth-stage companies with huge potential. What is more, these companies can also create positive change in society, and we speak to Mridula Pore, who tells us about the growth of Peppy Health after receiving venture capital investment from Hambro Perks. We learn that investing in venture capital, as part of a diversified portfolio, can be a great way to help startups scale, create positive social impact and provide a good return on investment for pension trustees looking to grow their members capital for the long term.
Do your members/employees realise the importance of having enough money for retirement? There are more options available to employees than just their main scheme pension, and most employees do not realise how much they'll actually need for retirement.
However, there is some fantastic news for LGPS members. They have an opportunity to save an additional portion of their monthly salary into a separate pot from their main pension contribution via salary sacrifice; Shared Cost Additional Voluntary Contributions (Shared Cost AVCs).
One of most attractive features of the Shared Cost AVC scheme is that in reducing one's monthly salary, the contributing member will pay less income tax and NICs, effectively achieving growth of approximately 47% on every pound saved.
Although Shared Cost AVCs are fairly straightforward, the level of administration required to foster a successful take-up of the scheme amongst the workforce is anything but. Employers must complete regular and essential compliance checks, maintain general upkeep and educate employees frequently on the importance and benefits of saving extra for retirement. All these things present a challenge for employers when deciding whether to launch their own Shared Cost AVC scheme themselves.
This is where AVC Wise's services become invaluable, with their deep expertise and capability of providing both the guidance and requisite legwork to administer the scheme on behalf of an employer.
Their user-friendly platform makes it easy for employees and employers to see and manage their contributions, with clear, easy-to-understand advice and information. Their expert-led webinars and individual meetings have resulted in a combined conversion rate of 56%, whilst their educational email content has generated £1.6m of salary sacrifice this year alone.
Shared Cost AVC amounts can be altered at any time, suiting the financial needs of an individual.
Learn more at www.avcwise.co.uk
Last update: 24 November 2023
