In his first Mansion House Speech, Chancellor of the Exchequer Jeremy Hunt is expected to unveil plans that would create pension ‘super funds’ with the aim of boosting investment in the UK economy.
In the Chancellor’s annual speech in the City of London Hunt is expected to set out reforms that will make UK capital markets more attractive to investors, including luring global companies back to a London listing.
It has also been reported in the Financial Times that some of Britain’s biggest pension companies planned to commit five per cent of their investments to private equity and early-stage businesses, potentially unlocking up to £50bn by 2030.
Names including Aviva, Legal & General, Phoenix and Scottish Widows have been mentioned and follow numerous reports urging the government to use pension funds to boost UK economic growth.
Regulatory framework
Chris Cummings, chief executive of the Investment Association said the Chancellor’s comments recognised that investment must be at the heart of the UK economy and the importance of having pensions that delivered good returns.
He said: “With the right regulatory framework, pension schemes will be able to invest productively and sustainably, unlocking further investment for innovative growth companies, and improving returns for savers by broadening investment options. In tandem with reforms to the listings regime, this will help the UK to become a more globally attractive place for companies to list, invest and do business. “Achieving this new economic dynamism will require the government to bring together regulators, policymakers, and businesses, to create a forward-looking and internationally competitive investment framework, based on a stable, long term policy approach.
“This will also improve the gilt market, ensuring UK government debt remains attractive to domestic and international investors.”
“Delivering these outcomes will require us to strike the right balance between risk and reward and between protection and innovation. Investment managers stand ready to play our part.”
Pensions Expert will be updating readers with the full details of the speech later.
