Pension funds must invest in UK's private companies, says British Business Bank chief
- The British Business Bank chief argues that pension funds are overlooking investment opportunities in local private companies.
- He suggests that ministers would not need to intervene if pension funds better understood the strength of the UK market.
- Increased investment in local assets by pension funds could drive economic growth and stability.
In recent months, the British Business Bank chief highlighted the underutilization of investment opportunities in private UK companies by pension funds. The comments suggest a significant disconnect between pension fund managers and potential local investment avenues that could strengthen the economy. It has been suggested that UK ministers would not require enforcement measures if the pension funds recognized the robust performance and resilience of these private enterprises. By advocating for increased awareness and understanding, the chief aims to motivate pension funds to prioritize local investments, fostering economic growth and stability. This call to action resonates as the economy navigates through challenges, reinforcing the importance of local investment strategies for long-term sustainability and resilience amid prevailing economic uncertainties.