Pension scheme ownership of FTSE at 22 year low

Thu 06 Feb 2014

UK pension funds’ ownership of UK quoted shares has dropped to a 22 year low at £82.7 billion pounds.

UK pension funds’ ownership of UK quoted shares has dropped to a 22 year low at £82.7 billion pounds. In 1990, when data analysis started, pension funds’ ownership accounted for £140.4 billion which was 31% of the total value of quoted companies. The latest figures at £82.7 billion represent just 5% of the total value of UK quoted companies, which stands at £1,756.3 billion.

Pension funds also show a similar split of ownership of FTSE 100 / other UK quoted shares to the broader market with just over 85% invested in the FTSE 100. Only individual investors have a much wider split of investments with 28% invested in the broader market and 72% in the FTSE 100. 

Suzie Rudzitis, Managing Director, Equiniti Pension Services division said; “The analysis of share ownership highlights some dramatic changes over the last two decades, not least the significant reduction in exposure to equities by pension funds. One factor which may explain this is that pension funds have in recent years attempted to address funding shortfalls by moving away from a reliance on returns generated from investments in equities, to lower risk strategies such as absolute return vehicles.”