Overview

• Scottish Widows will reduce UK equity allocation in its highest growth portfolio from 12% to 3% and in its most conservative portfolio from 4% to 1% by January 2026.
• The firm will adopt a market-weight approach to global equities, increasing exposure to larger markets such as the US.
• It is the only major pension provider to reject the May Mansion House Accord, which calls for boosting UK private asset investments.
• The Treasury has powers to enforce the Accord’s terms if signatories fail to meet their UK investment commitments.
• UK equities now represent 4% of the MSCI World Index, and pension funds’ UK stock holdings have declined from 53% in 2000 to just 6% today.