Mansion House Accord a “bold and positive step for pension savers”

Seventeen of the largest workplace pension providers in the UK have expressed their intent to invest at least 10% of their defined contribution (DC) default funds in private markets by 2030, with 5% of the total allocated to the UK.

The voluntary initiative, to be known as the Mansion House Accord, has been jointly led by the Association of British Insurers (ABI), the Pensions and Lifetime Savings Association (PLSA) and the City of London Corporation. 

Stephen Budge, Partner and Head of DC Investment Strategy, LCP,  commented:

“It is good to see that the government has backed off on threats to force pension schemes to invest in live with the Government's priorities.  The Mansion House Accord is undoubtedly a bold and positive step for pension savers. The threat of compulsion has been heeded, with providers stepping up.  

“By committing more to private markets, members stand to benefit from access to new sources of long-term return – like infrastructure, growth businesses and green energy. What’s not to like? Done well, this could mean better outcomes for members over time, through stronger growth and more resilient portfolios. 

“But after all the Mansion House speeches and commitments, Patient Capital Taskforces and working groups, we’re still floundering at the agreeing stage. It’s time to move beyond the talking and start seriously investing – getting money working harder, sooner, for our members.”