UK pension funds don’t have the capabilities to deliver a mandated 10 per cent minimum allocation to private assets, says Toby Glaysher

By threatening to enforce a 10 per cent minimum allocation to private assets, the government risks turning the Mansion House reforms from a visionary ambition into a blunt instrument. The premise behind the original concept, to nudge pension funds towards private markets voluntarily, was already pushing the boundaries of what’s possible. Now, with reports of mandatory thresholds, we are venturing into dangerously prescriptive territory, that could do more harm than good.

Unlocking pension capital for productive investment in sectors like infrastructure, private equity and private credit is, in principle, a sound idea. The trouble is that what is being proposed........

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