Jeremy Hunt has unveiled more proposals aimed at boosting DC schemes’ investment in the UK economy.
Pension schemes will be expected to report on their allocations to UK assets from 2027, the Treasury has announced.
In proposals set out over the weekend, chancellor Jeremy Hunt said the Treasury would consult on reporting requirements for schemes to disclose how much they allocate to UK investments.
The intention is to build on the Mansion House Compact and encourage schemes to invest approximately 5% of assets in UK “growth assets”.
The new measures go further and pledge that, by 2027, all defined contribution schemes will “disclose their levels of investment in British businesses”, alongside costs and returns disclosures.
Hunt said on Saturday: “British pension funds appear to contribute less to the UK economy than international counterparts do as they invest less in our domestic businesses. These requirements will help focus minds on how to improve overall returns and outcomes for savers.”
The measures go hand-in-hand with new rules on performance and value for money also unveiled by the Treasury on Saturday.
