UK pension funds are not taking “anywhere near enough risk”, particularly given efforts to reach net zero, National Wealth Fund head of banking and investment, Ian Brown, has said, emphasising the need for more investment in key UK assets.

Speaking at the Pensions and Lifetime Savings Association (PLSA) Investment Conference 2025, Brown urged pension scheme trustees to “please take some more risk”.

“Please take some more risk – do it in a considered way by all means,” he stated. “Do it with a small portion of your fund and take baby steps, but please talk to your pensioners, and think about taking a bit more risk.”

“The reality is we need to be taking more risk if we are going to get closer to net zero,” he continued, suggesting that this is also something that many scheme members are keen to see more action on.

“I would ask you to talk to your members to see what do they want, what do they care about, and if they care about meeting net zero, are you meeting their requirements,” he said.

This was echoed by IQ Capital managing partner, Kerry Baldwin, who argued venture is one key area schemes could consider allocating more of their investments, arguing that “while it is a riskier asset class, the returns, as are proven, are so much better”.

She also pointed out that whilst some projects and investments can take longer to reach fruition, once they do “they actually sell quite quickly and they sell very very well”.

“It’s got risk, because not all of those assets are going to survive, but that’s the job of being a very hands-on manager,” she continued.

She also highlighted the broader benefits mentioned by Brown, noting that “at the heart of this is the societal impact”.

“Members want to have that exposure,” she continued, suggesting that many savers are happy to take risk in order to access “great returns”.

“We’re not saying put all of your money into venture, but what we’re saying is look at that diversification” she clarified.

This was echoed by British Business Bank, British Growth Partnership managing partner, Ian Connatty, who said that people “really engage” when they hear more about the impact their pension investments are having within the society they live in, stressing the need to explain the “stories and narratives” surrounding scheme investments.

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