{"id":179811,"date":"2025-11-14T05:56:12","date_gmt":"2025-11-14T05:56:12","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/179811\/"},"modified":"2025-11-14T05:56:12","modified_gmt":"2025-11-14T05:56:12","slug":"pension-funds-reject-uk-plc-proposal-to-get-savers-into-local-stocks","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/179811\/","title":{"rendered":"Pension funds reject UK Plc proposal to get savers into local stocks"},"content":{"rendered":"<ul data-testid=\"Summary\" class=\"summary-module__summary__QjADA\">\n<li data-testid=\"Body\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf summary-module__point__UgXPz\">Pension industry warns against UK investment drive<\/li>\n<li data-testid=\"Body\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf summary-module__point__UgXPz\">Executives have urged UK finance minister to boost domestic share purchases<\/li>\n<li data-testid=\"Body\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf summary-module__point__UgXPz\">UK pension funds hold only 4.1% in domestic equities, down from 53% in 1997<\/li>\n<\/ul>\n<p>LONDON, Nov 13 (Reuters) &#8211; Proposals from the London Stock Exchange Group <a data-testid=\"Link\" target=\"_blank\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/markets\/companies\/LSEG.L\" rel=\"noopener nofollow\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC link-module__with-icon__qlg76\">(LSEG.L), opens new tab<\/a> and more than 100 British business executives to get pension funds investing more into UK stocks are ignoring the interest of savers, the pensions industry told Reuters.More than 100 executives including the chairs of Anglo American <a data-testid=\"Link\" target=\"_blank\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/markets\/companies\/AAL.L\" rel=\"noopener nofollow\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC link-module__with-icon__qlg76\">(AAL.L), opens new tab<\/a> and Barclays <a data-testid=\"Link\" target=\"_blank\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/markets\/companies\/BARC.L\" rel=\"noopener nofollow\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC link-module__with-icon__qlg76\">(BARC.L), opens new tab<\/a> and the CEO of Compass Group <a data-testid=\"Link\" target=\"_blank\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/markets\/companies\/CPG.L\" rel=\"noopener nofollow\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC link-module__with-icon__qlg76\">(CPG.L), opens new tab<\/a> wrote to Britain&#8217;s finance minister last week urging action to reverse the decline in buying domestic shares. They said it was depriving companies of cash, exporting wealth creation and damaging economic growth.<\/p>\n<p data-testid=\"promo-box\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf article-body-module__promo-box__hVl8h\"> Sign up  <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/business\/finance\/pension-funds-reject-uk-plc-proposal-get-savers-into-local-stocks-2025-11-13\/undefined?location=article-paragraph&amp;redirectUrl=%2Fbusiness%2Ffinance%2Fpension-funds-reject-uk-plc-proposal-get-savers-into-local-stocks-2025-11-13%2F\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" rel=\"nofollow noopener\" target=\"_blank\">here.<\/a><\/p>\n<p>In response, they proposed that defined contribution pension schemes ensure default funds &#8211; the funds that pension savers are automatically invested in &#8211; put a minimum 25% of their assets into UK investments across asset classes. Savers would continue to be free to opt out and choose alternatives.<\/p>\n<p>Zoe Alexander, executive director of policy and advocacy at industry body Pensions UK, said schemes were already seeking out UK investments with attractive risk-adjusted returns.<\/p>\n<p>&#8220;Going further by requiring a proportion of default fund assets to be invested in UK would introduce significant risk to investment returns. Somehow, the interests of the saver are being lost in this debate,&#8221; Alexander told Reuters.<\/p>\n<p>Incentivising <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/business\/finance\/british-pension-funds-pledge-step-up-uk-investments-2025-05-12\/\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" rel=\"nofollow noopener\" target=\"_blank\">UK asset ownership<\/a> has become a key objective of governments to revive growth. But many warn against mandating how they invest, a power the government has in reserve.<\/p>\n<p>UK pension funds hold 4.1% of their equity investments in UK-listed companies, against 53% in 1997 and a global average for defined contribution funds of 13%-plus, according to the letter, authored by LSEG&#8217;s chairman, Don Robert, and CEO David Schwimmer.<\/p>\n<p>Their proposal, if enacted, would increase overall investment in UK equities by between 76 and 95 billion pounds ($127 billion) by 2030, they said.<\/p>\n<p>LSEG declined to comment. Britain&#8217;s finance ministry did not immediately respond to a request for comment.<\/p>\n<p>Past regulations have been blamed for encouraging some schemes into government bonds and out of stocks.<\/p>\n<p>But investors say the appeal of overseas markets has played a role too. The U.S. S&amp;P 500 <a data-testid=\"Link\" target=\"_blank\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/markets\/quote\/.SPX\" rel=\"noopener nofollow\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC link-module__with-icon__qlg76\">(.SPX), opens new tab<\/a> has soared nearly 500% since 2010; Britain&#8217;s FTSE 100 <a data-testid=\"Link\" target=\"_blank\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/markets\/quote\/.FTSE\" rel=\"noopener nofollow\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC link-module__with-icon__qlg76\">(.FTSE), opens new tab<\/a> 80%.<\/p>\n<p>The Association of British Insurers&#8217; Yvonne Braun said in response to LSEG&#8217;s proposal that investments should not be influenced by external pressures and savers &#8220;must be at the heart of all policy decisions&#8221;.<\/p>\n<p>($1 = 0.7451 pounds)<\/p>\n<p data-testid=\"SignOff\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__extra_small__8Buss body-module__full_width__kCIGb body-module__extra_small_body__Bfz20 sign-off-module__text__LQAMP\">Additional reporting by Phoebe Seers; Editing by Alexandra Hudson<\/p>\n<p data-testid=\"Body\" dir=\"ltr\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf article-body-module__element__5eCce article-body-module__trust-badge__5mS3f\">Our Standards: <a data-testid=\"Link\" target=\"_blank\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.thomsonreuters.com\/en\/about-us\/trust-principles.html\" rel=\"noopener nofollow\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__medium__2Rl30 text-module__small__sph8i link-module__link__INqxZ link-module__underline_default__-okuC link-module__with-icon__qlg76\">The Thomson Reuters Trust Principles., opens new tab<\/a><\/p>\n<p><a href=\"https:\/\/www.reutersagency.com\/en\/licensereuterscontent\/?utm_medium=rcom-article-media&amp;utm_campaign=rcom-rcp-lead\" target=\"_blank\" dir=\"ltr\" class=\"button-module__link__A3sD0 button-module__secondary__70gBu button-module__round__QDFgq button-module__w_auto__Sem-F\" data-testid=\"LicenceContentButton\" rel=\"nofollow noopener\">Purchase Licensing Rights<\/a><a data-testid=\"AuthorBioImageLink\" class=\"author-bio-module__author-image__jcaG3\" href=\"https:\/\/www.reuters.com\/authors\/tommy-reggiori-wilkes\/\" referrerpolicy=\"no-referrer-when-downgrade\" tabindex=\"-1\" rel=\"nofollow noopener\" target=\"_blank\"><\/a><\/p>\n<p data-testid=\"Body\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__extra_small__8Buss body-module__base__o--Cl body-module__extra_small_body__Bfz20 author-bio-module__description__9ynkB\">Tommy is Europe Finance Editor, helping lead Reuters coverage of banking, asset management, real estate and crypto across the region. Previously he covered climate finance, was India Correspondent in New Delhi and reported on the European hedge fund industry.<\/p>\n","protected":false},"excerpt":{"rendered":"Pension industry warns against UK investment drive Executives have urged UK finance minister to boost domestic share purchases&hellip;\n","protected":false},"author":2,"featured_media":179812,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[177],"tags":[82519,82499,82758,36586,84442,85715,85716,85717,85718,79,84892,82500,94780,84110,82502,82528,94004,82532,101633,83113,18,55396,83599,7520,83600,83601,84901,82520,87319,32356,82503,84904,101634,82572,2004,82516,45748,19,82766,82767,17,84447,84449,63010,84450,82524,82575,234,235,82510,91558,101635,101636,87320,84824,84115,83126,83618,84438,107,82518],"class_list":{"0":"post-179811","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-amers","9":"tag-bact","10":"tag-bisv","11":"tag-biz","12":"tag-bmat","13":"tag-bnk","14":"tag-bnks","15":"tag-bnks1","16":"tag-bsvc","17":"tag-business","18":"tag-ccos","19":"tag-cmpny","20":"tag-coam","21":"tag-cycs","22":"tag-deal1","23":"tag-destoukbsm","24":"tag-destoukdnm","25":"tag-destouktpm","26":"tag-divmin","27":"tag-dli","28":"tag-eire","29":"tag-emea","30":"tag-ener","31":"tag-energy","32":"tag-enff","33":"tag-eng","34":"tag-ents","35":"tag-europ","36":"tag-fdrt","37":"tag-fin","38":"tag-fins","39":"tag-fnmkt","40":"tag-fnmkt1","41":"tag-fobe","42":"tag-fund","43":"tag-gb","44":"tag-gen","45":"tag-ie","46":"tag-invbis","47":"tag-invm","48":"tag-ireland","49":"tag-memi","50":"tag-min","51":"tag-mine","52":"tag-mtal","53":"tag-namer","54":"tag-ncyc","55":"tag-personal-finance","56":"tag-personalfinance","57":"tag-publ","58":"tag-repicoal","59":"tag-resbr","60":"tag-resbr1","61":"tag-rfod","62":"tag-rtm","63":"tag-shopal","64":"tag-soci","65":"tag-topicenergy-power","66":"tag-topicmarkets-commodities-metals","67":"tag-us","68":"tag-weu"},"share_on_mastodon":{"url":"","error":"Validation failed: Text character limit of 500 exceeded"},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/179811","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=179811"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/179811\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/179812"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=179811"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=179811"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=179811"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}