According to the UK government and Big Society Capital, pension funds are not investing enough in social and environmental impact investments. Pension funds are the largest asset owners in the UK economy and are legally obligated by fiduciary duty, to maximise financial returns. Many impact investment practitioners argue that fiduciary duty is the main reason holding back pensions from making impact investments, for various reasons. In this research based on my master’s dissertation, I argue that fiduciary duty is not the most critical reason holding back pension funds from impact investing. I designed a case study on UK pensions’ engagement with the impact investment market to test my hypothesis that measuring the impact of an investment leads to high transaction costs and is a limiting factor.
How to Cite:
Vishkin, D.E., 2017. Why have UK pension funds not taken on social impact investing?. The Public Sphere: Journal of Public Policy, 5(1), pp.75–106.