Terrific news, eh? UK pension funds have agreed to invest more of their assets in the UK, specifically in private markets, and specifically from their defined contribution (DC) schemes. Most of the big names are on the list of signatories to the expanded Mansion House accord: Aviva, Legal & General, Phoenix and more. And they’ve agreed to do their patriotic duty on a voluntary basis. “I welcome this bold step by some of our biggest pension funds,” said the chancellor, Rachel Reeves.
There is another way to view the fanfare. There are so many conditions attached to the “pledge” to invest in the UK that this looks more like an exercise in virtue-signalling. It is not helped by the adventurous arithmetic behind the government’s claim that the accord will “unlock up to £50bn” for the economy by 2030.
