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Scottish Widows, one of Britain’s largest pension providers, is preparing to significantly reduce its allocation to UK equities just as the government is pushing retirement funds to invest more in British companies.
The group, which manages £72bn of workplace pension assets in its default funds, is planning to cut the allocation to UK equities in its highest growth portfolio from 12 per cent to 3 per cent, according to a document seen by the Financial Times.
Scottish Widows said in a separate document explaining the change to clients that it was adopting a “more globally-diversified approach” with the aim of “enhancing risk-adjusted returns by capturing more growth opportunities in high performing international markets”.
The move by the Lloyds Banking Group-owned pension provider deals a further blow to…
