Overview

• The Mansion House Accord, signed by 17 pension providers, commits at least 10% of defined contribution default funds to private markets by 2030, with 5% allocated to UK assets.
• The Treasury estimates the initiative could inject £25bn directly into the UK economy and generate up to £50bn in total investment, supporting infrastructure, clean energy, and startups.
• Scottish Widows declined to join the accord, citing concerns over mandated UK investments and plans to launch a separate long-term asset fund by year-end.
• The agreement remains voluntary and subject to fiduciary and Consumer Duty obligations, though the government has hinted at potential enforcement measures if targets are not met.
• Industry leaders emphasize the need for a robust pipeline of investable UK assets and warn against mandation, which could risk lower returns for pension savers.