UK pension schemes have among the lowest proportion of funds held in domestic stocks and private assets of any significant global pension market. A new report by think-tank New Financial has added pressure on the government to revive investment in British industry. Just 4.4 per cent of UK pension assets are held in domestic equities, down from 6 per cent last year and much lower than a 10.1 per cent global average. Pension ownership of UK stocks has declined from around 50 per cent at the turn of the century as a slew of regulatory changes pushed corporate defined-benefit #pensionschemes into bonds. The UK’s corporate defined benefit schemes — which have around £1.4tn in assets or close to half of the UK’s pensions assets — have only 13 per cent invested in equities and only 1.4 per cent in domestic #equities, lower than every other system except the Netherlands. Lane Clark Rupert Forrest Bruce Spencer Peter Ripley source: New Financial
Robin Young
6mo
Fund managers need to be free to invest in markets and assets they feel will deliver best value for their customers. If governments want funds to invest in their geography, create environments that are encouraging growth. Examples recently, of governments trying to manipulate markets by forcing funds to invest backfire horribly. The horse goes in front of the cart, focus on the thing you should be influencing.
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6moI wonder what the allocation was like a decade or two ago. Most global equity funds have sub 4% in the UK now.