Chancellor Rachel Reeves used last week’s Mansion House speech to announce the creation of pension ‘mega funds’ in the biggest shake-up of the pensions market in decades. Modelling Canadian and Australian pension schemes, the reforms will group together local government pension pots, meaning fewer but larger funds.
The Government has stated that this will unlock £80 billion of investment as the new monolith pension pots will be able to generate greater returns by diversifying their asset portfolios. By 2030, the Local Government Pension Scheme in England and Wales will manage assets worth around £500bn.
The Chancellor also had good news for the life sciences industry. She announced a £500m LIFTS-backed partnership between Phoenix Group and Schroders, which will invest 20% of its capital in life sciences.
Furthermore, Aegon UK and NatWest Cushon, who have combined assets worth over £219 billion, have both agreed to work with the British Business Bank’ British Growth Partnership to invest in UK growth companies.
