Pension schemes and other asset owners have a ‘vital role’ to play in supporting national growth and social outcomes, Columbia Threadneedle (CT) Investments has argued.

The CT UK Social Bond Fund 2025 Annual Social Performance Report, produced by The Big Issue Group, outlined how pension schemes can align with the Mansion House Accord’s call for greater investment in the UK through increased allocations to UK bonds with a social impact.

It highlighted that investing in and integrating UK bond solutions with measurable social impact can provide schemes with access to UK social and sustainability bonds that support national growth and regional development, meet transition goals, and improve social outcomes.

CT argued that pension schemes that increased their focus on social impact investing had an opportunity to integrate UK social bonds within default strategies or self-select ranges to align growth objectives with measurable social impact.

Furthermore, the firm said those schemes would be able to partner with managers that provide impact reporting and transparent frameworks for issuer selection, engagement, and outcomes tracking, and use the asset class to diversify credit exposure while supporting economically productive projects across the UK.

“At a time when the Mansion House Accord calls for a transformational step change in the allocation of pension capital to UK growth assets, we believe that investments focused on social outcomes are not only compatible with fiduciary duty but are essential to delivering long-term value for savers and society,” said CT Investments portfolio manager, Tammie Tang.

“By investing where capital is most needed, whether in affordable homes, resilient utilities or accessible transport, we strengthen the foundations of inclusive growth across the country.”

Tang stated that master trusts had the scale to transform the reach and impact of retirement savings.

“Their backing can drive positive change in society while delivering outcomes for members and raising market standards through active engagement and clear outcomes reporting,” she said.

“We believe social outcomes investing sits at the heart of the next phase of DC pension evolution.”

The Big Issue Group chair, Nigel Kershaw, added: “Through our partnership with Columbia Threadneedle, we’ve shown that investing for social good delivers both real impact and financial returns.

“The CT UK Social Bond Fund directs capital into the areas that matter most, including affordable housing, clean energy and financial inclusion, helping to support communities across the UK while performing for investors.

“The Big Issue Group independently evaluates the social impact of every bond, and with 90 per cent of the portfolio rated high or medium, the results are clear: purposeful investment can help build a fairer, more inclusive economy.”

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