From Morningstar: 2025-06-11 04:54:00

The UK Pensions Schemes Bill aims to increase investments in UK businesses, but industry experts are skeptical of regulators’ power to mandate workplace pension funds to allocate more to private markets. 17 providers, including Aviva and Royal London, signed the Mansion House Accord committing to a 10% allocation, but enforcing this commitment may prove challenging.

Rachel Pinto from Herbert Smith Freehills Kramer warns that regulators’ power could lead to a breach of fiduciary duty by pension funds. New Capital Consensus suggests tax incentives may be necessary to ensure compliance with the Mansion House Accord. The think tank also recommends mandating DC default funds to outline their path to compliance.

UK pension funds’ interest in private markets has declined in the last decade, with only 33 commitments made this year compared to 92 last year. Private equity remains the most popular fund type, with 560 commitments since 2015. Merseyside Pension Fund is the most active UK pension fund, with 170 commitments in global private capital funds since 2015.



Read more at Morningstar: Can The Private Market Pension Mandate Be Enforced?