The Parliamentary Contributory Pension Fund (PCPF), which provides pension for Westminster’s MPs has just 1.3 per cent of its assets in UK shares.
Reports published in The Times this weekend show the relatively low exposure to the domestic stock market despite the Chancellor’s calls in the Budget last week for workplace pension schemes to disclose UK holdings.
Hunt warned steps may be taken to boost domestic investment if these disclosure showed UK schemes failing to keep step with international best practice guidelines.
The data shows that the government’s own pension scheme may be failing on this front though, with just £10m of the £784.7 million PCPF fund invested in UK equities.
Figures published by Corporate Adviser (to the end of 2022) reveal that the average DC workplace master trust or GPP has an average of 8 per cent of their scheme in UK listed equities — comfortably above the Parliamentary schemes.
The Lewis Master Trust has the highest exposure to equities at 34 per cent, while a number of leading schemes — including TPT and Aegon Master Trust do not have any exposure to the UK stock market.
Updated figures for asset allocation of leading master trust and GPPs will be published in April.
The report also shows that the top-performing master trust and GPPs all have lower than average allocations to the UK stock market. This has raised questions from many market commentators on whether Hunt’s proposals could impact longer-term outcomes for members.
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