Scottish Widows has delivered a brutal snub to Rachel Reeves’ plan to encourage pensions funds to invest more in British stocks. The pensions giant – part of Lloyds Banking Group – which manages £72 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’re not playing ball…
Last month the firm refused to sign up to Reeves’ ‘Mansion House Accord’ 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…
Scottish Widows said it was planning a “more globally-diversified approach” with the aim of “enhancing risk-adjusted returns by capturing more growth opportunities in high performing international markets”. Reeves’ plan has been slammed by industry insiders, with Antonia Medlicott, managing director of Investing Insiders warning: “Investment decisions should be made solely on the basis of what will produce the best outcome for the investor. Political pressure – and now a mandate forcing fund managers to make certain choices – should never be the driving force.” Quite…
The Treasury has previously threatened to “reinforce” the so-far voluntary Mansion House strictures pursued by Reeves. Scottish Widows’ early insubordination might stir the hand of ‘involuntary’ investment mandates…
Red Wall Labour backbencher Jonathan Brash told GB News that Starmer should resign:
“I’m completely fed up about it, and I think it’s got to the point now where I genuinely think that, as far as the Prime Minister is concerned, it’s not a case of if, it’s when.”