Rachel Reeves Credit: HM Treasury Flickr
Rachel Reeves will launch an initiative next week with 20 of the UK’s largest pension funds to encourage easier investment in Britain, reports say.
An article in the Financial Times today (16 October) said the Sterling 20 initiative – which is being led by the City of London Corporation alongside the Treasury – will try to make it more seamless for pension funds to back British infrastructure and growth projects, and stems from the chancellor's desire to mimic Canada's ‘Maple 8'pension investment model.
It said that, according to people close to the discussions, the organisations joining forces in Sterling 20 include the Universities Superannuation Scheme, Legal & General, People's Pension, the Pension Protection Fund, Pensions Insurance Corporation, NatWest Cushon, Pensions UK, Rothesay and Mercer.
The FT said it was expected that local government pension funds will also join in the spring.
The move comes after 17 of the largest UK workplace pension providers announced they had signed the Mansion House Accord in May – expressing their intent to invest at least 10% of their defined contribution (DC) default funds in private markets by 2030, with at least 5% allocated to the UK.
The accord – jointly led by the Association of British Insurers (ABI), Pensions UK (formerly the Pensions and Lifetime Savings Association) and the City of London Corporation – is a voluntary expression of intent by signatories to facilitate access for savers to the higher potential net returns that can arise from investment in private markets as part of a diversified portfolio, as well as boosting investment in the UK.
