Jo Sharples on energy transition opportunities for AON’s new LTAF offering
AON plans to launch two LTAF's in 2026. Jo Sharples, CIO for AON's DC offering sets out what this might mean for investments in the energy transition
The UK’s DC market is maturing and, with that, comes a gradual expansion into private markets. For most of the past decade, DC investors have had, rightly or wrongly, the reputation of being cost conscious and invested predominantly in indices. But more than a decade into auto enrolment, the picture is evolving rapidly and many DC investors have announced significant commitments to private market assets.
One person who has witnessed this evolution is Jo Sharples, who has led the investment team of AON’s DC offering for more than a decade. In one of our earlier conversations, the comparison with parenting emerged. Having moved on from their more passive newborn stage, DC investors are now venturing into more unpredictable terrain as they take their first steps into private markets. But, as any parent will know, development happens at very different paces, with some walking sooner than others.
While challenges around costs, scale and daily pricing might be consistent across the industry, the way schemes approach unlisted assets varies significantly. Nest, the UK’s largest master trust, is banking on significant strategic partnerships, including the acquisition of a major stake in IFM Investors, while some smaller master trusts have been committed for years. Yet some of the country’s largest master trusts are still to unveil their plans.
AON, which manages some £12bn in DC assets in the UK, including more than £5bn in its master trusts, has so far taken a more cautious stance. However, the launch of the new LTAF structure in 2023 has been an important turning point.
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