UK Pensions Investment Disclosure

Chancellor Jeremy Hunt announced on Saturday that U.K. pensions will be required to disclose their domestic investments to aid in boosting the struggling U.K. stock market.

Key Details:

• Date: Announced on Saturday
• Requirement: Pensions to disclose domestic investments
• Purpose: Boost U.K. stock market

Performance Comparison and Regulatory Action

Industry Support

Julia Hoggett, the chief executive of the London Stock Exchange, expressed support for the initiative. She emphasized that investing in UK companies benefits both the companies themselves and pension holders living in the country, ultimately supporting the economy.

Company Relocations

Some companies, such as CRH and Flutter Entertainment (owner of FanDuel), have either transferred or are in the process of moving their primary listing from the U.K. to the U.S. Additionally, British chip designer ARM Holdings opted for a New York listing upon its return to the stock market.

Market Observations

Charles Hall, the head of research at Peel Hunt, highlighted that pension funds have only allocated 4% of assets to U.K.-listed companies, a significant decline from 44% in 1998. Hall suggested that along with investment disclosure, further steps such as reducing capital gains tax on British investments could be beneficial.