Aon is the latest pension provide to announce its participation in the Mansion House Compact, by pledging to allocate a minimum of 5 per cent of defined contribution (DC) funds to unlisted equities by 2030.
This compact was announced by Chancellor of the Exchequer, Jeremy Hunt, during the Mansion House Pensions Summit, with an objective to unlock over £50 billion in new capital by the end of the decade to help facilitate the growth of fast-growing businesses in sectors like fintech and biotech within the UK.
This announcements aligns Aon with other pension providers including i Aviva, Scottish Widows, L&G, Phoenix, Nest, Smart Pension, M&G, and Mercer who have made similar pledges. These organisations have said that this investment objective should help secure enhanced returns for pension savers, while delivering on the chancellor’s wider economic goals.
The Mansion House Pensions Summit serves as a platform to underscore the necessity of collective action within the pension industry. Bringing together key stakeholders, trade bodies, market experts, and government representatives, the summit seeks to advance the goals of the Mansion House Compact. Discussions will revolve around the cultural and technical barriers to increased investment in unlisted equities.
Aon UK CEO Julie Page says: “Opening up investment markets and allowing DC pension schemes to access new opportunities such as unlisted equities should enhance future asset returns and lead to better outcomes for pension savers. We are fully supportive of what the Mansion House Compact is looking to achieve, and we believe that this initiative is right for Aon’s UK DC solutions which will soon have £7 billion assets under management and 180,000 members – who are always our greatest priority.”
