UK Pensions Boost Private Investment But Lag Behind Reeves Goal

UK pension funds doubled their investment in unlisted equities over the past year, though they remain below the levels needed to meet a pledge to the government to support private businesses.

Eleven firms that signed the Mansion House Compact two years ago had increased allocations to private markets to 0.6% of defined-contribution default funds by February, up from 0.36% a year earlier, according to the Association of British Insurers.

They now have £1.6 billion of unlisted equities within default funds — where pension savers’ money automatically ends up, until they choose different investments — up from £800 million a year ...