A capital markets think tank is calling for default pension funds to invest 20-25% of their equity holdings in UK companies – a weighted allocation to reverse the decline of London’s stock market. It claims two-thirds of savers believe UK pensions should invest more in domestic equities, even if returns are “marginally lower”.
New Financial, the think tank, published its findings in partnership with the Capital Markets Industry Taskforce, which is chaired by CEO of the London Stock Exchange, Julia Hoggett. She claims the UK has underinvested in itself for the past 25 years, “from infrastructure and private companies, through to the companies listed on its public markets”.
“The need to stimulate growth is profound and therefore the importance of pulling the levers required to reverse this underinvestment is equally urgent,” she added.
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