UK plans to create pension megafunds with aim of unlocking $100 billion for investment

Associated Press

LONDON (AP) — British Treasury chief Rachel Reeves says the government plans to merge dozens of pension funds with the aim of unlocking tens of billions of pounds for investment and boosting the U.K.’s sub-par economic growth. Reeves said in a speech late Thursday that the creation of so-called “megafunds” will represent the “biggest pension reform in decades.” The proposed merger of 86 local authority pension funds in England and Wales has echoes in Australia and Canada, where pension funds are widely seen to have taken advantage of their bigger size to invest in assets and boost growth. The Labour government will introduce the reforms in parliament next year. Early indications suggest it has broad support.