Retail investment in UK equities is the lowest among G7 nations and ‘streets behind’ the US, according to UK-based investment manager Abrdn, which is calling for action to address risk culture and boost capital markets.
The report has highlighted how UK adults hold only 8% of their wealth in equities and mutual funds outside of pensions — the lowest in the G7. Instead, 50% of British wealth is tied up in property and 15% in cash.
According to estimates, if UK adults allocated as much of their wealth to investments as US citizens (33%), it could inject up to £3.5 trillion into the capital markets over the long term.
“Around half of household wealth in the UK is in housing, reflecting a concentrated asset allocation compared to the US,” said Xavier Meyer, CEO Investments at Abrdn. Meyer emphasised the need for a national culture of long-term share ownership, supported by good regulation, products, and…
