UK pension funds’ allocations to British stocks hit historic low

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Retirement schemes shun London-listed equities and private markets

UK pension schemes have among the lowest proportion of funds held in domestic stocks and private assets of any significant global pension market, according to a new report, adding 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.

John Graham, president and chief executive of the Canada Pension Plan Investment Board, one of the world’s biggest pension funds, told the Financial Times last year that he was opposed to “any constraint on portfolio construction” or “any influence to invest in a specific asset class or a specific part of the market”. CPPIB has delivered annualised returns of 9.2 per cent over the past decade.

 

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