UK Plans to Force Pension Funds to Invest in Private Markets

The UK said it plans to require the country’s pension funds to invest in private markets and the domestic economy, a move widely opposed by the City of London’s investment managers.

The government “will take a reserve power in the pension schemes bill to set binding asset allocation targets” for investments in private markets, the Treasury said Thursday in an emailed statement. It also will secure £27.5 billion ($36.9 billion) for “local investment priorities” from defined-benefit programs for public employees.