Pension funds should invest more in UK shares, telling investors to ministers

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The main fund managers have warned at a Downing Street meeting that the sentiment towards the London Values ​​Market is in “Bottom Rock” and urged the ministers to consider the United Kingdom pension funds to assign at least 5 percent of their investments to household action.

A group of United Kingdom Actions Directed by Nick Lawson, CEO of the Ocean Wall Investment Group, this week met Varun Chandra, a special business adviser to business, to discuss ways to revitalize public equity markets.

Fund managers exposed their concerns about the state of the UK capital market, and agreed that the investors’ sentiment was in “Rock Bottom”.

The meeting emphasized several challenges, including the fact that Delisings of the British market exceed the new initial public offers, a strong valuation gap between the companies in the United Kingdom and the United States, and the opinion that companies in the United Kingdom are achieving a cheap by private capital and foreign buyers.

Participants also said that companies were facing a “doom loop” caused to make national pension funds net vendor of the United Kingdom variable for nine years in a row.

The meeting arrived the day after the US Food Delivery Company, Doordash reached an agreement of 2.9 million pounds For the United Kingdom opponent, four years after he floated in London with an assessment of £ 7.6 million and was baptized by one of his bankers “the worst oip in London history,” he lost more than a quarter of his value on the first day of negotiation.

With the assessment, an important factor in deciding where companies choose to list, the subperformation of the prolonged United Kingdom has pushed them to look abroad, especially in the United States. List costs and government charges have also been quoted as drowning.

The participants in the Downing Street meeting made the case of raising domestic equity assignments for British pension funds, including through the mandate.

The objectives of 5 %, 8 percent and 10 percent were discussed as reasonable thresholds to consider, and there was a broad agreement that defined contribution schemes should prioritize defined benefits schemes.

“If UK pension funds go to 10 percent, it would be a heroin shot for the United Kingdom markets,” said Lawson, who added that he was in favor of “gently guided mandate.”

Some meeting participants suggested that this change could announce a much wider “virtuous circle” that would benefit companies, markets and savers, restoring the confidence and support of valuations.

But the concept of mandate is very controversial.

Pension fund executives say that making mandatory investment goals would “open a can of worms” and reduce their fiduciary duty to achieve the best possible performance for investors.

The pension funds are expected that this month a voluntary compact (an update of the 2023 mansion House Compact signed under the last conservative government) to invest 10 percent in private assets in the late decade, with half the United Kingdom.

However, the FT understands that there will be no specifications to invest in actions listed.

Although former chancellor Jeremy Hunt considered the mandate, he did not introduce politics before last year’s election. Chancellor Rachel Reeves has not excluded the idea, but the ministers do not hesitate.

Honey Stride, Chancellor of Shadow, said the idea AwakeTelling financial times this week: “Pension funds need to be free to make investment decisions based on what is better for savers.”

The meeting managers of the meeting included veteran stock exchanges such as David Cumming, a Variable Income head of the United Kingdom of Newton Investment Management, Andy Brough of Schroders, and Michael Stasiany, head of the United Kingdom Variable Income of M&G Investments.

A person close to the thought of the National Labor Savings Trust, the United Kingdom defined pension regime, which has the government’s support, said that his priority was to invest the best for its members, but added that the fund had been public in its commitment to invest in the United Kingdom.

Nest, who manages more than 50 million pounds, said that about 1.75 percent of his total active was invested in United Kingdom shares in late March. Liz Fernando, Nest Investment Chief, told the Ft in an interview That he had been “actively cheering” all those responsible for Nest to look for assets of the United Kingdom.

A Government spokesman said that ministers sought to say that “companies can access the finances they need to grow.” The spokesman added: “It is correct that we relate to the interested parties as part of this.”

“The final report of pension investment review will be published shortly and will consider how to ensure the unlocked investments in the United Kingdom.”