Marvin OnumonuPension schemes face a fragmented system with unclear coordination and limited routes to invest in UK growth assets at scale, according to the latest report from Pensions UK.
The report, ‘From commitment to deployment: Scaling pension fund investment in the UK economy’, set out the practical steps needed to mobilise pension capital, including investable structures, better coordination across public bodies, and regulation that supports long-term value.
The report found that more investment in UK growth relies on creating pension-grade opportunities with clear routes to market and suitable risk-return prospects.
It mapped the UK pension investment system, examined four key public finance institutions, and shared examples from the private sector.
A year after the Mansion House Accord, progress has been made but the system remains fragmented.
Practical barriers such as insufficient risk-adjusted returns, lack of suitable opportunities, and policy uncertainty were highlighted.
The report called for improved pipeline visibility, risk-sharing, and regulation focused on value.
Zoe Alexander, executive director of policy and advocacy at Pensions UK, said: “Pension schemes are already major investors in the UK, supporting economic growth – but more practical, co-ordinated action by Government and agencies is needed to support their efforts to keep scaling those investments.
“Schemes need a diverse range of investable routes that are consistent with fiduciary duty, and deliver good outcomes for savers.
“A year on from the delivery of the Mansion House Accord, this report sets out the practical steps needed so that public finance institutions, regulators and industry can work together to connect long-term pension capital with a clearer, more investable pipeline of UK opportunities.”
Lorna Blyth, managing director – investment proposition at Aegon, said: “We welcome Pensions UK’s new report, which sets out practical steps for pension schemes to increase investment in UK growth.
“As a founding signatory to the Mansion House Accord, we have already deployed one-third of our DC workplace private market assets in the UK, driven solely by our fiduciary duty to secure better risk-adjusted returns for members rather than by mandation.
“Ensuring clearer regulation and access to scalable pension-grade opportunities is vital.”
Blyth added: “At the same time, we believe providers must retain discretion to balance risk, return and liquidity and to set allocations voluntarily in their members’ best interests.
“We urge the Government and industry to adopt pragmatic timelines and to deliver a steady pipeline of high-quality UK private market investment opportunities that are appropriate for the scale of pension assets.
“This is vital to optimise member outcomes and ensure long-term UK economic growth.”
