![]() ![]() ![]() ![]() UK pension funds stand accused of becoming increasingly conservative in their investment strategies over the last two decades to the detriment of both pensioners and businesses.ĭata shows funds have largely shunned investment in UK stocks and instead placed their capital in safer but less lucrative assets such as bonds.įigures released earlier this year by the think tank New Financial showed that pension funds’ investment in UK stocks has plunged from 53pc of total assets in 1997 to just 6pc in 2021.Ĭritics argue that this so-called “de-equitisation” is part of the reason why UK retirement funds have delivered lower returns than their counterparts in Australia and Canada, which have been given more freedom to invest in higher risk asset classes such as listed and early-stage companies, venture capital and private equity. While the Chancellor’s plans may be met with scepticism in certain parts of the City, executives in the Square Mile largely welcomed the Government’s attempts to overhaul the investment landscape amid growing fears that London is falling behind rival financial centres. The Chancellor hopes to unlock better returns for pension savers by encouraging retirement funds to invest more cash in riskier – but higher yielding – ventures such as start-ups and private equity. Jeremy Hunt used his first Mansion House speech on Monday night to make a bold pledge: today’s young workers will be £1,000-a-year better off in retirement thanks to a series of post-Brexit reforms. ![]()
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