Big Pension Fund Managers Pledge UK Investment

As part of the Mansion House Accord, 17 of the largest defined contribution (investment fund pensions) workplace pension providers have committed to invest a minimum amount in UK stocks i.e., UK companies to boost the UK economy rather than outside the UK by 2030.

• Minimum 10% to be invested in private markets.
• Minimum 5% to be invested in UK.

Private markets are companies that are not listed on publicly traded stock exchanges meaning mean more money will flow into private equity and private debt i.e., investing in smaller growth industry firms and lending money directly to companies in eth same area.

It has been estimated that this will inject around £50bn into markets.  It is a particular boost for smaller companies with the potential to grow and boost the UK economy.

This is on top allowing defined benefit (salary related) pension schemes being allowed to invest any surpluses into markets.  This equates to another £160bn.

Signatories to the new Accord:

• Aegon UK
• Aon
• Aviva
• Legal & General
• LifeSight
• M&G
• Mercer
• NatWest Cushon
• Nest
• Now:Pensions
• Phoenix Group
• Royal London
• Smart Pension
• The People’s Pension
• SEI
• TPT Retirement Solutions
• Universities Superannuation Scheme (USS)

Comment

The are still some notable omissions that we hope will come on board such as Scottish Widows.

Many countries such as Australia, Canada and parts of Europe already have laws in place requiring their pension funds to invest a minimum in their own country, so it is right that British money should be invested in Britain rather than developing other countries economies and at an additional c£210bn, this is ‘not to be sniffed at’.