---
title: "Pension industry reports slow progress on private market investment targets"
publisher: "Stockmark.IT"
author: "Stockmark.IT Website"
published: "2026-10-21T04:41:14+00:00"
modified: "2026-10-21T04:41:14+00:00"
date: 2026-10-21
canonical: "https://stockmark.it/cautious-trustees-tie-the-hands-of-pension-schemes-and-hold-back-growt/"
category: "Investment"
categories: ["Investment", "Pensions"]
image: "https://i0.wp.com/stockmark.it/wp-content/uploads/2026/10/pension-industry-reports-slow-progress-on-private-market.png?fit=1536%2C1024&quality=80&ssl=1"
format: "news"
language: "en-GB"
---

# Pension industry reports slow progress on private market investment targets

**Published:** October 21, 2026
**Author:** Stockmark.IT Website
**Categories:** Investment, Pensions
**Featured image:** ![Pension industry reports slow progress on private market investment targets](https://i0.wp.com/stockmark.it/wp-content/uploads/2026/10/pension-industry-reports-slow-progress-on-private-market.png?fit=1536%2C1024&quality=80&ssl=1)

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The UK pensions industry has reported limited progress in shifting assets towards private markets, with new data revealing that the majority of committed capital continues to flow into property rather than high-growth equities. This update comes as the Association of British Insurers, which administers the government-backed Mansion House Compact and Accord, details the current allocation landscape. Industry leaders have warned that an excessive focus on low management fees is restricting the ability of schemes to invest in riskier but potentially higher-return asset classes.

According to the latest figures, the 17 signatories of the Mansion House Accord had allocated 3.3 per cent of their assets into UK private markets by December 2025. This equates to a total of £11.1bn. However, the composition of these investments is heavily skewed towards real estate. Approximately 70 per cent of the committed capital, or £8bn, was invested into property and real estate. A further £1.3bn was directed into infrastructure, while only £500m was allocated to private equity. This disparity highlights a significant gap between the volume of capital deployed in established asset classes and those considered less established, such as venture capital and private equity.

Zoe Alexander, chief policy officer at Pensions UK, attributed this imbalance to the prevailing market culture. She stated that when employers and employee benefit consultants select fund managers primarily based on price, it effectively ties the hands of pension schemes. This focus on ultra-low fees makes it considerably more difficult for trustees to allocate capital to asset classes that typically command higher fees, such as private equity and debt. Alexander argued that the industry needs to move towards more rounded decision-making processes that consider long-term growth potential alongside cost efficiency.

Yvonne Braun, director of long-term savings and health and protection policy at the ABI, acknowledged that private equity is viewed as a less established route compared to property. However, she maintained that investing in property remains beneficial for the broader economy. Braun also highlighted a regulatory conflict, describing it as self-evidently not helpful that performance fees are treated differently depending on whether a firm is regulated by the Financial Conduct Authority or The Pensions Regulator. All signatories remain subject to the FCA’s Consumer Duty and other fiduciary obligations, ensuring that investments align with the financial interests of savers.

Progress against the separate Mansion House Compact is also lagging significantly behind its targets. Enacted in 2023, the Compact required 11 signatories to invest a minimum of five per cent of their default funds into unlisted equities. Three years after coming into force, total allocation has reached just 0.85 per cent, amounting to £2.7bn. Michael Moore, executive at UK Private Capital, described the limited investment in private equity as disappointing. He warned that at the current rate of progress, the Compact target will be missed by a decade or more, posing a risk to the UK’s potential for sovereign leadership in technology and the creation of thousands of new jobs.

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