Seventeen of the largest workplace pension providers in the U.K. have agreed to invest at least 10 per cent of their defined contribution default funds in private markets by 2030, with half of that total allocated to the U.K.
The voluntary initiative, known as the Mansion House Accord, will be jointly led by the Association of British Insurers, the Pensions and Lifetime Savings Association and the City of London Corp. The program aims to secure better financial outcomes for DC plan members while boosting investment in the U.K. and driving funds into major infrastructure projects and clean energy developments, according to a press release.
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Signatories to the new commitment include Aegon Ltd., Aon, Aviva, Legal & General Group, Lifesight, M&G, Mercer, NatWest Cushon, the National Employment Savings Trust, NOW: Pensions, Phoenix Group, Royal London Group, Smart Pension, the People’s Pension, SEI, TPT Retirement Solutions and the Universities Superannuation Scheme. Based on providers’ current investment holdings, total pension assets in the scope of the agreement amount to £252 billion.
The accord builds on the 2023 Mansion House Compact, which saw 11 signatories commit to the objective of investing five per cent of DC defaults in unlisted equities, including venture capital and growth equity, by 2030. For providers that participate in both initiatives, progress under the compact counts towards meeting the accord’s goals, noted the release.