Aon, a leading global professional services firm, has announced it will join the Mansion House Compact as the Chancellor of the Exchequer, Jeremy Hunt, renews his support for the agreement at the Mansion House Pensions Summit hosted by the Corporation and EY.
Aon has become the latest firm to allocate a minimum of 5% of defined contribution (DC) funds to unlisted equities by 2030, with the aim of unlocking over £50 billion of new capital by the end of the decade. It now joins Aviva, Scottish Widows, L&G, Phoenix, Nest, Smart Pension, M&G, Aegon and Mercer who represent the majority of the DC market and have also agreed to deliver on the dual aim of securing better returns for savers and ensuring fast-growing businesses in sectors like fintech and biotech can stay and scale in the UK.
The Summit will reinforce the need for collective action from the pension industry by bringing together key stakeholders across the pensions industry, trade bodies, market experts and Government to progress the aims of the Compact and discuss cultural and technical barriers to furthering investment in unlisted equities.
A series of roundtables and panel discussions at the Summit will be centred on the appetite for investment in unlisted equities, efforts to accelerate this investment and how the pension ecosystem can evolve to have the tools, skills and talent necessary to facilitate increased flow into unlisted equities.
Nicholas Lyons, the Lord Mayor of the , said:
“The UK is not short on innovative and successful tech, biotech or life science companies but too often British people are not able to reap the benefits from the growth of these firms. The Mansion House Compact has created a pivotal opportunity for pension reform that can allow British companies to grow and list here as well as boost pension returns for savers.
“The momentum behind the Compact is critical to increasing investment from institutional investors into unlisted equities and I’m pleased that the number of signatories continues to increase and I’m excited for the progress to come.”
Chris Hayward, the Policy Chairman of the Corporation, said:
“The Mansion House Compact signifies the important convening role of the Corporation in bringing together industry and Government.
“The pensions summit is a critical moment to assess the progress of the Compact ahead of the Autumn Statement as well as addressing the barriers to implementing this initiative more widely. In our report, Vision for Economic Growth, we pinpoint pension reform as a key driver to raising investment levels for high growth British companies to boost prosperity in every corner of the country.”
Jeremy Hunt, Chancellor of the Exchequer, said:
“The signing of the Mansion House Compact in July was a landmark moment, demonstrating the commitment of the pensions industry to delivering better returns for their scheme members. “I am delighted that Aon are joining the Compact, ensuring its 180,000 members will stand to benefit from the growth of some of the UK’s most innovative high-growth companies.
“This is British financial firepower driving British growth, providing higher retirement incomes and better funded public services for the British people.”
Julie Page, chief executive officer of Aon UK, said:
“Opening up investment markets and allowing defined contribution (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.”
Axe Ali, EMEIA Financial Services Private Equity & Venture Capital Leader at EY said:
“Increasing capital into the UK’s most successful and innovative companies should have a halo effect on the national economy and will support the best interests of pensions savers by broadening equity allocation, improving Defined Contribution outcomes, and ensuring UK companies have access to new avenues of capital.
“From co-authoring the report; Powerful Pensions: Unlocking DC Pension Capital for UK Tech Growth in conjunction with the Corporation, to supporting the delivery of the Mansion House Compact and the Mansion House Pensions Summit, EY is supportive of initiatives that capture value for both pension savers and the wider economy. It is encouraging to see additional institutional investors supporting this intent and increasing momentum behind the Compact, ultimately shaping a stronger UK economy long-term.”
ENDS
Notes to editors
Please find further information on The Mansion House Compact and the FAQ’s here: http://www.theglobalcity.uk/resources/mansion-house-compact.
The Corporation is the governing body of the Square Mile dedicated to a vibrant and thriving City, supporting a diverse and sustainable London within a globally-successful UK.
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