Blow to Reeves as Lloyds\u2019 Pension Arm Slashes Investment in UK <\/p>\n
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Scottish Widows has delivered a brutal snub to Rachel Reeves\u2019 plan to encourage pensions funds to invest more in British stocks. The\u00a0 pensions giant \u2013 part of Lloyds Banking Group \u2013 which manages \u00a372 billion of workplace pension assets in its default funds, is planning to cut the allocation to UK equities in its highest growth portfolio from 12% to 3%. They\u2019re not playing ball\u2026<\/p>\n
Last month the firm refused to sign up to Reeves\u2019 \u2018Mansion House Accord\u2019 demanding funds put 10% investment in private markets by 2030 with a requirement to put half of that in UK market. No surprise considering UK stocks have underperformed for two decades. State-directed investing dressed up as economic patriotism\u2026<\/p>\n
Scottish Widows said it was planning a \u201cmore globally-diversified approach\u201d with the aim of \u201cenhancing risk-adjusted returns by capturing more growth opportunities in high performing international markets\u201d. Reeves\u2019 plan has been slammed by industry insiders, with Antonia Medlicott, managing director of Investing Insiders warning:\u00a0\u201cInvestment decisions should be made solely on the basis of what will produce the best outcome for the investor. Political pressure \u2013 and now a mandate forcing fund managers to make certain choices \u2013 should never be the driving force.\u201d Quite\u2026<\/p>\n
The Treasury has previously threatened to \u201creinforce\u201d the so-far voluntary Mansion House strictures pursued by Reeves.\u00a0Scottish Widows\u2019 early insubordination might stir the hand of \u2018involuntary\u2019 investment mandates\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"Blow to Reeves as Lloyds\u2019 Pension Arm Slashes Investment in UK mdi-fullscreen Scottish Widows has delivered a brutal…\n","protected":false},"author":2,"featured_media":198537,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3093],"tags":[51,474,2499,16,15],"class_list":{"0":"post-198536","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-finance","10":"tag-personal-finance","11":"tag-uk","12":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114712962835935201","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/198536","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=198536"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/198536\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/198537"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=198536"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=198536"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=198536"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}