Macro-financial risk
2026-04-26
10 minute read
17 sources
UK Mansion House and the Megafund Turn: DC Consolidation, LDI Memory, and the Productive Finance Bet
The November 14, 2024 Reeves Mansion House speech, the Pensions Investment Review interim report, and the Pensions Schemes Bill route a £400 billion LGPS pool consolidation and a DC megafund threshold of £25 billion. The 2022 LDI episode and a thinning gilt term premium frame the policy choice.
The UK pension system holds roughly £3 trillion of assets across defined benefit, defined contribution, and Local Government Pension Scheme schemes. The Mansion House Compact of July 10, 2023, signed by nine large DC providers, committed 5 percent of default fund AUM to unlisted equities by 2030. Chancellor Rachel Reeves's November 14, 20...