New Capital Consensus

A Better Investment System for All

[New Capital Consensus @NewCapConsensus]

We're absolutely delighted with the reaction to our first #RedesignReport which aims to synthesise the views of a cross-industry series of workshops that we carried out earlier in the year 🎉
(1/2)

[New Capital Consensus @NewCapConsensus]

Mark-to-market accounting regulations and daily liquidity requirements form part of the reinforcing measures which ‘shred’ long-term, patient capital inherent in pension funds and convert them into thousands of short-term bets on volatility and market movements. 🎇 (6/6)

[New Capital Consensus @NewCapConsensus]

Our second 'Redesign Report', out today, addresses the the systematic transfer of risk from institutions to individuals 📝 🖋️
You can read the full report here:
https://t.co/bZYDmduhlQ (1/6)

[New Capital Consensus @NewCapConsensus]

Long-term, addressing a culture obsessed with eliminating risk rather than managing it effectively is central to the long-term redesign of the system. (5/6)

[New Capital Consensus @NewCapConsensus]

And you can read our report entitled 'Diversifying Investment Flows' which delves into the issue below 👇
https://t.co/q1IcVEjURd (3/3)

[New Capital Consensus @NewCapConsensus]

We're delighted to host a webinar in September on how the UK can rebalance it's US-dominated institutional capital flows - with distinguished Chair Alan Livsey, CFA (Financial Times), panellist Simon Ellis (DC Master Trust Chair) and our own Ashok Gupta (Director, NCC). (1/3)

[New Capital Consensus @NewCapConsensus]

We will cover factors that drive UK pension funds overseas and the affect this has on the investment system and outcomes for members. Qs from the audience will also be taken throughout the session.
Register your interest by emailing [email protected] (2/3)

[New Capital Consensus @NewCapConsensus]

This report's aim is to diagnose why the investment system diverts so much UK pensions money to US tech stocks and practical steps the government and regulators can take to rebalance this 🔧

To find out more, don't hesitate to get in touch or visit https://t.co/VBvgyutPoo 💻

[New Capital Consensus @NewCapConsensus]

We're absolutely delighted with the reaction to our first #RedesignReport which aims to synthesise the views of a cross-industry series of workshops that we carried out earlier in the year 🎉
(1/2)

[New Capital Consensus @NewCapConsensus]

We've produced a short Q&A as to why superfunds are so important, and what the government can do to ensure they succeed 📜 👇

https://t.co/lfj6jKL6zP

[New Capital Consensus @NewCapConsensus]

There is currently £1.2tn of potential long-term investment capital in our DB pension schemes 💰

As they approach their 'mid-game' crossroads, they are faced with three choices: running-on as a smaller scheme, being bought-out by a life insurer, or joining a superfund 🚦(1/3)

[New Capital Consensus @NewCapConsensus]

We believe that ensuring superfunds are a major part of the DB mid-game picture will allow them to achieve the Goldilocks point - not too big to invest in UK regions, not too small to move the dial - and allow the end-game capital to reach assets that improve the UK economy (2/3)

[New Capital Consensus @NewCapConsensus]

Whether they like it or not, pensioners in this country will be investing billions into a firm in which Elon Musk has 84% voting control.

Index inclusion methodology has become, in effect, UK retirement policy - we have to address this as such 📊

https://t.co/YbxEmejOle

[New Capital Consensus @NewCapConsensus]

In our letter to the Financial Times today, we go one further than Toby Nangle's analysis that it will cost pensioners not to have an opinion on SpaceX 🚀

In fact, the index already has one for them.

[New Capital Consensus @NewCapConsensus]

Most UK DC pension funds are anchored in some way to a world-index and therefore are automatically investing more in Nvidia than the entire UK economy combined 💸

[New Capital Consensus @NewCapConsensus]

That is why we believe the system needs redesigning. You can take a look at some of our reports to find out more 👀
https://t.co/krxxF1gTL1

[New Capital Consensus @NewCapConsensus]

The UK does not have a shortage of capital. The money exists.

£6 trillion.

That is the value of private investment capital sitting within the UK system today - predominantly our retirement funds. It is the second-largest pool of investment capital in the entire OECD 💰

[New Capital Consensus @NewCapConsensus]

And yet, we are struggling to unlock the funds we need to address climate change, rebuild our infrastructure and solve the housing crisis 🍃 ⚡ 🚆