The M&S pension scheme is at risk of “huge potential losses” after plouging money into a Home REIT sister fund that is now under investigation by the Financial Conduct Authority.
Home Long Income Fund (HLIF), a social housing fund that has garnered hundred of million of pounds from city investors including M&S pension cash fund managers, is under scrutiny by the FCA, reported City AM.
The management of the fund is being investigated by the regulatory watchdog after unreported regulatory filings from its parent group Alti showed its value halved to approximately £200m between June 2022 and 2023.
While in January, the FCA said it was probing linked firm Home REIT after a 60% drop in value, but did not announce it was also inquiring into Alti’s other fund, HLIF.
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It is understood a drop in value of HLIF’s portfolio would create significant losses that impact its investors, which include M&S.
M&S has not declared how much money from its pension scheme it has invested in the fund, but it is known that the retail giant publicly backed the scheme as early as 2020 – years before Alti reported the fund’s 2022-2023 drop in value.
In its 2020 investor literature, M&S used HLIF as an example of “positive impact on the planet today”, adding: “Individuals housed through the scheme are given training and rehabilitation to provide the skills and confidence to find long-term accommodation and re-integrate into society”.
Grocery Gazette has contacted M&S for comment.
1 Comment. Leave new
As an M&S pensioner I’m amazed and shocked that a so called professionally managed pension fund is happy to risk its members savings on a vanity project.
I bet they didn’t invest their own money.
They have so far not made any statement to the company’s pensioners.
It’s time they did.