Industry experts have welcomed the launch of the Mansion House Accord, suggesting that "the threat of compulsion has been heeded, with providers stepping up", although challenges remain in some key areas.


The Mansion House Accord, a new voluntary initiative building on the Mansion House Compact, was announced today, with Seventeen of the largest UK workplace pension providers in the UK have expressed their intent to invest at least 10 per cent of their defined contribution (DC) default funds in private markets by 2030.

The news was welcomed by The Pensions Regulator, with chief executive, Nausicaa Delfas, suggesting that the accord could both boost returns for pension savers while also potentially unlock more capital for investment in the UK economy.

“Savers rightly expect good performance from their pension investments," she stated.

Broader industry organisations have also backed the launch of the accord, as British Private Equity and Venture Capital Association (BVCA)chief executive, Michael Moore, also suggested that the deal "could be a huge step forward for the UK economy if the signatories follow through on their commitments".

Pensions Management Institute (PMI) chief strategy officer, Helen Forrest Hall, agreed, suggesting that the initiative marks a "significant moment" in the conversation around pension investment and UK economic growth.

However, she clarified that while commitments and accords signal ambition, the real test lies in delivering the regulatory and economic conditions that make UK markets genuinely attractive to pension funds.

“For those running UK pension schemes the ultimate responsibility is to act in the best interests of members," she added. "Pension funds will invest where opportunities align with long-term value and security.”

Mansion House Accord - What the signatories have to say

The signatories themselves have also been quick to emphasise the importance of the new accord, with Aon DC solutions CIO, Jo Sharples, agreeing that investing in private assets will benefit pension scheme members by delivering better expected returns over the long-term, ultimately resulting in higher retirement outcomes.

Adding to this, People's Pension board of trustees chair, Mark Condron, said: “Providing value to our members remains the key principle behind all of our investment activity, including in this area.

In particular, Condron welcomed the long-term support from the government to ensure a strong and sustainable pipeline of private investment opportunities.

Phoenix Group CEO, Andy Briggs, suggested that the new commitments will also help to strengthen the economy by fuelling the growth of British businesses and boosting investment in critical infrastructure.

Aviva Group chief executive officer, Amanda Blanc, also said that the deal is a "major opportunity" for the pension and investment industry to support UK growth while delivering improved outcomes for pension savers.

This sentiment was echoed by M&G CEO, Andrea Rossi, who said that by enabling and encouraging greater investment into these assets, individuals could benefit from enhanced returns, greater diversification and better value by having their pensions invested in this way.

Universities Superannuation Scheme (USS) group chief executive officer, Carol Young, agreed, stating that private markets can offer "attractive investment opportunities for pension schemes like USS ".

She also pointed out that the scheme already has a 25 per cent allocation to private markets within the Growth Fund of its DC offering (the Investment Builder), with around 12 per cent of the Growth Fund in UK private markets.

The USS is not the only organisation looking to go beyond the Accord, as Nest chief investment officer, Liz Fernando, also stressed that the fund currently has around 15 per cent of its assets under management in private markets, and an ambition to increase this to 30 per cent in the coming years.

And other signatories are already announcing new investments in line with the new commitment, as Now Pensions CEO, Patrick Luthi, and chair of board of trustees, Joanne Segars OBE, confirmed that Now Pensions will be making its first investment into UK private markets "shortly", focusing on affordable housing.

"By investing in appropriate UK Private Market opportunities, we can together achieve alignment of our member’s long-term interests, with UK growth and benefits to society more broadly," the pair stated.

"Alongside Mercer, we look forward to continuing to work with Government to promote the right environment to invest in private markets and the UK."

NatWest Cushon CEO, Ben Pollard, also pointed out that, in addition to the investment case, which is why the firm is a signatory to the new accord, there is "another positive angle - reconnecting people with the investments their pension is making".

"These types of investments are real and tangible and show savers how hard their money is working to improve their standard of living in the UK," he stated, pointing out that recent research from NatWest Cushon has shown that pension savers want to see more of their money invested in the UK, in alignment with the Mansion House Accord.

A move away from mandation

In particular, industry experts welcomed the news that the accord is voluntary, with LCP partner, Stephen Budge, suggesting that "the threat of compulsion has been heeded, with providers stepping up".

“It is good to see that the government has backed off on threats to force pension schemes to invest in live with the government's priorities," he continued. "The Mansion House Accord is undoubtedly a bold and positive step for pension savers."

However, he argued that "it’s time to move beyond the talking and start seriously investing – getting money working harder, sooner, for our members".

Indeed, Forrest Hall argued that while commitments and accords signal ambition, the real test lies in delivering the regulatory and economic conditions that make UK markets genuinely attractive to pension funds.

“For those running UK pension schemes the ultimate responsibility is to act in the best interests of members," she added. "Pension funds will invest where opportunities align with long-term value and security.”

But this could require broader changes, as TPT Retirement Solutions chief executive, David Lane, clarified that particular hurdles remain around value for money considerations and the availability of suitable investment opportunities.

"These should be a focus for government policy to spur more investment," he continued.

"The most pressing issue to deal with is that provider pricing practices leave very little room in the annual management charge for investment fees. There needs to be a shift to a value for money approach that considers the returns from an investment and not just its fees.”

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