Overview

• Seventeen major pension providers signed the Mansion House Accord pledging at least 5% of assets to UK markets and 10% to private investments by 2030, while Scottish Widows opted out
• The Treasury will introduce a backstop power in upcoming legislation to mandate domestic investment if voluntary targets are unmet
• Charlie Nunn, Lloyds Banking Group’s CEO, cautioned that forced allocations would conflict with trustees’ duty to secure the best returns and likened the move to capital controls
• Benoit Hudon of Mercer UK warned that directing funds into unlisted UK assets could lower long-term returns for pensioners
• Louis Taylor of the British Business Bank argued that a robust pipeline of UK opportunities could eliminate the need for compulsory mandates