ALO31: What If the Illiquidity Premium Was Never Real? ft. Richard Tomlinson

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Sep 17, 2025

Richard Tomlinson, CIO of LPPI, expertly manages £27 billion in pension assets, focusing on practical portfolio strategies. He discusses the declining relevance of terms like 'illiquidity premium' and the necessity of clear-eyed thinking in an evolving market. The conversation covers inflation's structural drivers, fiscal dominance's quiet rise, and the challenges in traditional investment assumptions. Tomlinson also details the complexities in local authority pension schemes and the critical balance needed in risk management and asset allocation.

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ANECDOTE

From Engineer To Scarred Trader

Richard Tomlinson fell into finance from engineering and learned most from running his own highly-levered trading book in 2008–09.
That episode gave him “scar tissue” and clarity about risk that still shapes his decisions.

INSIGHT

Pooling With A Liability Focus

LPPI formed to pool local pension assets and deliver scale, lower fees, and better governance.
The mandate centers on paying pensions affordably by designing liability-aware portfolios.

ADVICE

Use Sophistication Selectively

Be as sophisticated as necessary but avoid needless complexity that increases risk.
Design processes and teams to implement best practice in a cost-efficient, controlled way.

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