U.K. proposes fee cap tweaks to ease illiquids investment
The Houses of Parliament in London
The U.K. government has reiterated its commitment to making it easier for defined contribution plans to boost investments in illiquid assets.
Rishi Sunak, U.K. Chancellor of the Exchequer, set out in his spring budget 2021 speech Wednesday plans to strengthen public finances and lead an investment-driven recovery following the economic damage caused by the coronavirus pandemic.
The government s plans include amending the way DC fees capped at 0.75% of assets under management and administration are calculated. By smoothing, or spreading the performance fees charged by managers over multiple years rather than looking at an individual year s fees, the government hopes to facilitate DC investment in illiquid strategies.