Last week the government launched a call for evidence as part of a review of the pensions sector. It came as fresh figures from think-tank New Financial showed that UK pension schemes have among the lowest proportion of funds held in domestic stocks and private assets of any significant global pension market, adding pressure on the government to revive investment in British industry.

UK pension funds allocate around 4 per cent of their assets to UK stocks, think-tank New Financial said in a report this week, down from over half 25 years ago — a stunning retreat.

Only 4.4% of assets in UK pension funds are invested in British equities, down from 6.1% last year and more than 50% 25 years ago, New Financial finds.

"Nobody in London is expecting any of what has moved from the UK to the EU to ever come back,” said William Wright, managing director of think tank New Financial

A recent report from think tank New Financial shows the number of smaller companies listed on London markets has dropped by around a third over the past 20 years – and accelerated significantly over the past decade.

Just four per cent of the stock market is now held by pension funds, down from 39 per cent twenty years ago, according to data from think tank New Financial.

"The City – Past, Present, and Future," by William Wright, looks into the complexities and dynamics that have shaped the current landscape and will define the future of London's financial district.

“Sweden now has the deepest capital markets in Europe,” said William Wright, co-founder of markets think-tank New Financial. “What they’ve realised is you do need this ecosystem and you need to encourage it at every step of the way.”

According to the findings of the 54-page report from think tank New Financial, monitoring progress of 200+ signatories to HM Treasury Women in Finance Charter, the headline figure of female representation is 35 per cent.

A recent op-ed in the FT on British ISAs from our managing director, William Wright,

UK pensions have a "significantly lower" allocation to domestic and unlisted equities than most developed market pension systems globally, according to a separate report published on Friday by think tank New Financial.

Just 4.4 per cent of UK pension assets are held in domestic equities, down from 6 per cent last year and much lower than a 10.1 per cent global average. Only Canada, the Netherlands and Norway have a lower allocation, according to a study by think-tank New Financial.

Minimum contributions in Australia and Sweden are around 12 and 18 per cent of salary, and New Financial — a capital markets think-tank — estimates that 20 per cent or more is typical for Canadian and Dutch workers.

"The most important change is that there has been a big shift in mindset by Labour towards the City in the past few years," William Wright, managing director of think-tank New Financial told Reuters.

"And I here look at figures from New Financial, a think tank. Their estimation is that another 4,400 companies in the EU could raise an extra €470 billion every year on capital markets – if we get there."

As Wright concludes, given Labour’s red lines on single market membership, “no amount of improved mood music” will reverse the mechanical impact of Brexit on the City.

Just four per cent of the market is now held by domestic pension funds, down from 39 per cent at the turn of the millennium, according to data from think tank New Financial.

An annual review published last month, opens new tab with think tank New Financial showed that the signatories had increased female representation in senior ranks to 35% on average in 2023, from 34% in 2022.

Britain's finance sector faces long haul to gender parity, report says

Only four per cent of the UK stock market is currently held by pension funds, down significantly from 39 per cent in 2000, according to a report from the think tank New Financial.