Schroders welcomes the Mansion House proposals unveiled by UK Chancellor of the Exchequer Rachel Reeves, designed to drive growth and competitiveness in financial services.
As part of the reforms, the Chancellor revealed measures to merge Local Government Pension Scheme assets and consolidate Defined Contribution (DC) schemes to “support investment and boost pension returns.”
The Chancellor announced proposals focused on supporting the United Kingdom “as a leading centre for Green Finance.”
Richard Oldfield, Group Chief Executive, Schroders, said that they have all the building blocks we need to generate growth in the UK.
Oldfield added that they have great, innovative companies; they have the capital, and theyhave the expertise and “a capital market to link the two.”
Oldfield also mentioned that what they need now is an “injection of optimism and a healthier attitude to taking risk in the pursuit of reward.
Paul Myles, Head of LGPS, Schroders, said that for over 30 years Schroders has been working closely with local authorities to “manage their pension assets.”
Myles also noted that the creation of the LGPS pools several years ago supported their ability to “work in partnership and they have subsequently been selected to manage significant mandates for the pools.”
Tim Horne, Head of UK Defined Contribution, Schroders, said that Schroders has long been a partner to the UK’s DC market.
Horne added that the breadth of their investment capabilities means they are well placed to be the partner of choice for master trusts of greater size.
Andy Howard, Global Head of Sustainable Investment, Schroders said that the need to transition to a more “sustainable UK and global economy is becoming increasingly clear.”
Howard also mentioned that the right regulatory framework and data will help us and our clients to “make this transition more effectively, but this should not be at any cost and focus on the right areas. It is absolutely right for the Government to think carefully about how to implement new frameworks pragmatically, and in ways that maximise their benefits at reasonable costs.”
As part of the Mansion House package, it was revealed that Schroders’ private markets business, Schroders Capital, had been allocated a “combined £500m as part of the Long-Term Investment for Technology and Science (LIFTS) initiative.”
This entails £250m from the British Business Bank and £250m from Phoenix Group, the UK’s savings and retirement business.
The Phoenix investment will be made via its private markets JV with Schroders, Future Growth Capital.
