Encourage pension funds to join sovereign wealth funds
Last updated: 02:40pm 8 December 2019
Conservative Party Manifesto 2017, p.20
We will encourage pension funds with an interest in joining Future Britain funds to do so.
A sovereign wealth fund (SWF) is a “state-owned pool of money that is invested in various financial assets“. The Sovereign Wealth Fund Institute hosts a list of the top 87 sovereign wealth funds ranked by total assets, led by Norway, China and Abu Dhabi. In the UK, the idea of a sovereign wealth fund was raised as long ago as 2012 as a possible way to unlock resources to stimulate growth. The manifesto laid out plans to establish a number of sovereign wealth funds, called ‘Future Britain funds’, “backed by revenues from shale gas extraction, dormant assets, and the receipts of sale of some public assets”. This policy is a promise to encourage pension funds to join those Future Britain funds.
Since the general election, a sovereign wealth fund has been called for, for instance by MP John Penrose in March 2018. However, we could find no evidence of government efforts towards the creation of any such fund.
In the absence of the roll-out of Future Britain funds, pension funds cannot be encouraged to join them. As a result, this policy is ‘not started’.
Want some background reading?
- A UK sovereign wealth fund? – BBC News
- Joseph Mariathasan: The UK should set up a sovereign wealth fund – Investment & Pensions Europe
- Watch: A Citizens’ Wealth Fund Explained – Institute for Public Policy Research
- Could a UK citizens’ wealth fund tackle the inequality crisis? – The Social Policy Association
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