LSE chief urges pension transparency to boost UK investment

Dame Julia Hoggett, boss of the London Stock Exchange, has called on pension providers to increase clarity regarding their portfolio compositions. She argues that greater transparency would encourage institutions to back more domestic companies and help savers understand where their retirement funds are invested. Clearer reporting could accelerate commitments to allocate capital towards UK equities and private assets.

The intervention highlights growing pressure on the savings sector to direct larger portions of enormous portfolios toward the domestic economy. In 2025, seventeen pension providers agreed in a landmark deal known as the Mansion House Accord to invest at least five per cent of their funds in UK private assets and infrastructure. Concurrently, annuity giants are being required to disclose costs and performance more clearly.

However, the industry faces scrutiny for failing to clarify market breakdowns despite ministerial efforts to channel money into flagging capital markets. Although boasting the worlds second-largest pension pot, just four per cent of schemes hold capital in UK assets, one of the lowest proportions globally. Over the past two decades, allocation to London-listed equities has fallen from over fifty per cent of average funds to roughly 4.4 per cent.

The sector has resisted legal obligations to ringfence cash for domestic investment, warning that mandates could jeopardise fiduciary duties and noting a lack of attractive assets. Hoggett stated the UK is becoming an international outlier by offering tax incentives without expecting returns in the local economy. She noted most countries would not provide subsidies without requiring reinvestment.

Concerns persist over the health of Londons capital market ecosystem, where fast-growing private companies struggle to raise funds from home investors and often turn overseas. The stock market has shed dozens more firms this year, with many acquired by foreign rivals or international buyout firms. Hoggett emphasised that transparency would allow measurement of tangible changes fostered by these initiatives.

The Association of British Insurers was approached for comment regarding the developments in pension investment strategies and regulatory expectations facing the sector.