Mansion House Accord

What's this all about?

Seventeen of the largest workplace pension providers have signed the Mansion House Accord, a voluntary commitment to allocate at least 10% of their DC default funds to private market assets by 2030. Notably, a minimum of 5% of this investment is earmarked for UK-based assets, including infrastructure, property, and private equity.

This initiative aims to enhance retirement outcomes for DC savers by accessing the stronger net returns typically available through private markets, while stimulating investment in the UK economy. With the participating providers managing approximately £252 billion assets, the Accord is expected to unlock up to £50 billion for UK businesses and infrastructure projects. The Accord builds upon the 2023 Mansion House Compact, which set a 5% target for investment in unlisted equities

More information can be found here.

What does this mean for UK employers?

Employers with providers that have signed the Accord – you should ask your provider how they plan to meet this commitment. You should also consider if you are comfortable with your provider’s plan to invest more in private assets.

Employers with providers that have not signed the Accord – you should consider your own views on whether private markets can add value for members. You should consider asking your provider about their reasoning for not signing the accord and what their plans are for their investment strategy.

Employers who have bespoke strategies – you should consider your own view on the value that the inclusion of private assets within your scheme’s investment strategy may offer to your employees.