Pension funds ‘to unlock up to £50bn’ of investment, with half for UK firms

The 17 largest UK pension funds have reached an agreement with the government, known as the "Mansion House accord," committing to invest at least 5% of their portfolios in private market investments by 2030, including £50bn, with £25bn focused on UK-based projects. This doubles their previous investment commitment from 2023 and aims to revive domestic investment in London amid recent losses for major companies like Arm and Flutter, while also exploring ways to boost British stock investments through tax-free accounts. The government’s efforts reflect a cautious approach as pension funds weigh the potential returns of UK assets against the risks posed by global economic shifts.