{"id":11213,"date":"2025-08-01T15:27:28","date_gmt":"2025-08-01T14:27:28","guid":{"rendered":"https:\/\/sbwm.uk\/?p=11213"},"modified":"2025-08-01T15:27:29","modified_gmt":"2025-08-01T14:27:29","slug":"who-is-making-your-pension-investment-decisions","status":"publish","type":"post","link":"https:\/\/sbwm.uk\/v3\/news\/who-is-making-your-pension-investment-decisions\/","title":{"rendered":"Who is making your pension investment decisions?"},"content":{"rendered":"<!-- wp:themify-builder\/canvas \/-->\n\n<p><b>The Government is taking an increasing interest in where pension funds are investing \u2013 or not investing.<span class=\"Apple-converted-space\">\u00a0 \u00a0<\/span><\/b><\/p>\n<p>As March\u2019s Spring Statement underlined, Government finances are in a tight and precarious position. <span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p>Financial constraints were also squeezed under the previous Government, which led the Chancellor\u2019s predecessor, Jeremy Hunt, to launch the Mansion House Compact in July 2023. The Compact was signed by eleven major workplace pension providers, which agreed to invest 5% of their default workplace funds in private company shares by 2030. Mr Hunt aimed to finance small UK businesses without requiring fresh Government support by, for example, tax incentives or subsidised loans.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p>Rachel Reeves made her first Mansion House Speech in November 2024 and, unsurprisingly, talked in similar terms to Mr Hunt about directing millions in pension funds towards UK investment. In May 2025, she launched the \u2018Mansion House Accord\u2019, building on the previous \u2018Compact\u2019. Seventeen major pension providers, accounting for about 90% of active savers\u2019 defined contribution (DC) pensions, signed up to the new Accord. By doing so, they agreed:<\/p>\n<ul>\n<li>By 2030, to invest 10% of their workplace pension portfolios in \u201cprivate assets\u201d, such as unlisted company shares, property, infrastructure and private debt.<span class=\"Apple-converted-space\">\u00a0<\/span><\/li>\n<li>That at least half their private portfolios would be ringfenced for the UK. The Treasury estimates up to \u00a325bn of assets by 2030.<span class=\"Apple-converted-space\">\u00a0<\/span><\/li>\n<\/ul>\n<p>At present, the agreement is just that, but when asked whether she would make the 10% and 5% private investment levels mandatory, the Chancellor\u2019s response was \u201cNever say never\u201d. There is some unease among investment managers that mandation could creep in. The current agreement signed by the pension providers does have some wriggle room \u2013 for example, the Government is expected to \u201cfacilitate\u201d a pipeline of UK investment opportunities.<\/p>\n<p>In practice, meeting the private asset goals is likely to focus on investments made by default investment funds \u2013 those where most money flows because no other specific investment is selected. If your pension invests in a default fund, you may want to review your choice and take some investment advice tailored to your own goals, not the Government\u2019s.\u00a0<\/p>\n<p><b><i>The value of your investment and any income from it can go down as well as up and you may not get back the full amount you invested.<span class=\"Apple-converted-space\">\u00a0<br \/><\/span><\/i><\/b><b><i>Past performance is not a reliable indicator of future performance. <span class=\"Apple-converted-space\">\u00a0<\/span><\/i><\/b><\/p>","protected":false},"excerpt":{"rendered":"<p>The Government is taking an increasing interest in where pension funds are investing \u2013 or not investing.\u00a0 \u00a0 As March\u2019s Spring Statement underlined, Government finances are in a tight and precarious position. \u00a0 Financial constraints were also squeezed under the previous Government, which led the Chancellor\u2019s predecessor, Jeremy Hunt, to launch the Mansion House Compact [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":11214,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"wds_primary_category":160,"footnotes":""},"categories":[160],"tags":[],"class_list":["post-11213","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","has-post-title","has-post-date","has-post-category","has-post-tag","has-post-comment","has-post-author",""],"builder_content":"","_links":{"self":[{"href":"https:\/\/sbwm.uk\/v3\/wp-json\/wp\/v2\/posts\/11213","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sbwm.uk\/v3\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sbwm.uk\/v3\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sbwm.uk\/v3\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/sbwm.uk\/v3\/wp-json\/wp\/v2\/comments?post=11213"}],"version-history":[{"count":0,"href":"https:\/\/sbwm.uk\/v3\/wp-json\/wp\/v2\/posts\/11213\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sbwm.uk\/v3\/wp-json\/wp\/v2\/media\/11214"}],"wp:attachment":[{"href":"https:\/\/sbwm.uk\/v3\/wp-json\/wp\/v2\/media?parent=11213"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sbwm.uk\/v3\/wp-json\/wp\/v2\/categories?post=11213"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sbwm.uk\/v3\/wp-json\/wp\/v2\/tags?post=11213"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}