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UK pensions’ domestic equities down to 4.4%, below global average; de-risking blamed as Treasury/DWP issue call for evidence in Labour’s pensions review

Published on: 10 September 2024

Published by a Law360 reporter
Legal News
Article summary

New Financial report

On 5 September 2024, New Financial reported that UK pension funds’ exposure to British shares in 2024 has slipped to 4.4%, down from 6.1% a year earlier. This is below the global average of 10.1%, and only Canada, Norway and the Netherlands commit a smaller portion to their domestic equities. The London-based think tank produced the study in collaboration with the Capital Markets Industry Taskforce, a group that works to enhance and promote the growth of capital markets in the UK. Over the last 25 years, UK pension funds have progressively reduced their holdings of domestic shares. Corporate defined benefit plans now allocate just 1.4% to UK equities, while public-sector schemes put around 9% into the market, the report noted...

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