Pension funds set to release up to £50bn for investment, with a focus on UK companies| Pension Sector Update

The bosses of 17 of the UK’s biggest pension funds have reached a deal with the government to release up to £50bn worth of investments, with at least half designated for British assets, including clean energy projects and homegrown startups. Fund managers such as Aviva, Legal & General, M&G, Phoenix, and the Universities Superannuation Scheme committed to invest at least 10% of their workplace pension schemes in private market assets by 2030. Half of these investments, or 5%, will focus on UK assets like private British businesses, property, and major infrastructure projects, in support of the government’s efforts to boost the economy. This agreement exceeds the previous pledge made in 2023 under the Mansion House compact, which did not require UK-based investments. While the fund managers welcome this commitment, some are cautious about mandatory investments in UK assets, fearing it could lead to lower returns for retirees. The signatories manage portfolios worth £252bn currently, with the government projecting a growth to £740bn by 2030, potentially leading to £50bn in new investments in private markets.

Source: https://www.theguardian.com/business/2025/may/13/uk-pension-funds-investment-british-firms-mansion-house-accord