London Stock Exchange boss: We should know which companies our pensions are backing
The boss of the London Stock Exchange has called on pension providers to be clearer about the make-up of their vast portfolios, arguing that greater transparency would encourage them to back more homegrown companies. Dame Julia Hoggett told City AM it should be easier for savers to determine where their retirement nest eggs are invested, [...]
Dame Julia Hoggett, the boss of the London Stock Exchange, has urged pension providers to enhance transparency regarding the composition of their extensive portfolios. Dame Hoggett argued that increased visibility would incentivize pension providers to invest more in domestic companies. She emphasized the need for pensioners and UK investors to understand precisely where their retirement savings are allocated.
"We need more transparency for pensioners and for those investing in the UK as to where their money is actually invested," she stated in an interview. Dame Hoggett's remarks come amid mounting pressure for the UK's savings sector to accelerate its allocation of significant funds to the domestic economy. In 2025, 17 pension providers pledged to invest at least five percent of their funds in UK private assets and infrastructure, a significant commitment known as the Mansion House Accord.
To complement this industry shake-up, annuity giants are also expected to disclose their costs and performance more transparently. However, the pensions industry has faced criticism for lacking clarity on the markets and asset classes in which its funds have chosen to invest, despite the government's call for them to invest more in the country's struggling capital markets.
Despite being the world's second-largest pension pot, only four percent of pension funds' capital is currently held in UK assets, a figure among the lowest in the developed world. Over the past two decades, the proportion of London-listed equities in average pension funds has plummeted from over 50 percent to roughly 4.4 percent.
While the pensions sector has resisted calls for legal obligations to prioritize domestic investments, arguing that such a move could undermine their duty to act in their customers' best interests, Dame Hoggett contends that the UK is acting as an international outlier by forgoing potential tax revenue in return for subsidies. She questioned why most countries wouldn't demand a portion of that subsidy to be invested domestically, suggesting the UK's approach is a genuine public debate worth considering.
Written by urgent.news from City AM's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
