Leading UK pension funds, including Aviva and Legal & General, have pledged to invest a portion of their defined contribution schemes in UK private markets. Although this is framed as a patriotic move, the commitment is tempered by conditions rooted in fiduciary duties, meaning investments will prioritize financial returns over national interests. Critics argue that the government's optimistic projections for economic gains from this investment may be overly ambitious, as pension funds will act primarily based on risk and return considerations.
The commitment is subject to fiduciary duty and consumer duty, meaning investments will prioritize return over patriotic sentiment unless government structures align favorably.
This pledge seems more like virtue-signalling, as pension funds emphasize profits over government wishes. They'll invest in UK projects, but only if the returns are appropriate.
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