UK Pension Funds Encouraged to Invest in High Growth Sectors
(12 July 2023 – United Kingdom) British Finance Minister Jeremy Hunt has outlined highly anticipated plans to encourage pension funds to invest in high-growth sectors.
Seeking to recuperate Britain's sluggish economic growth without further expanding ballooning public debt, the United Kingdom (UK) government is seeking to convince pension schemes to invest more funds in infrastructure as well as startups and green technology. Some pension funds have rejected the notion of adjusting their investment mandate in response to the government initiative.
Bringing down high inflation remains a major priority for treasury as there cannot be sustainable growth without first eliminating the rising prices deterring investment and eroding consumer confidence.
"Everything we do we will seek to secure the best possible outcomes for pension savers, with any changes to investment structures putting their needs first and foremost. The government will prioritise a strong and diversified gilt market. Any changes to the pensions industry will be evolutionary not revolutionary. The reforms will never compromise Britain's competitive position as a leading financial centre" Hunt stated.
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