The tragedy of British pension funds is that their holdings of UK equities have dwindled to negligible levels.
The allocation to UK shares has fallen from some 53 per cent in 1997 to a pathetic 4.4 per cent now.
Not only have values on the London Stock Exchange been suppressed but it has also enabled overseas and private equity plunderers to spirit away some of Britain’s most promising enterprises such as smart chip pioneer Arm Holdings.
Chancellor Rachel Reeves correctly has diagnosed that the biggest pots of savings in Britain are not working in the national interest.
She has persuaded 17 of the biggest UK private pension managers to allocate up to £50billion of defined contribution funds to the UK, with infrastructure and start-ups the priorities.
In the latest move, designed to replicate the investment success of Canada’s public sector union schemes and the Australian superannuation fund, she wants £1.3trillion of…
