Prime Minister and Chancellor call for “Investment Big Bang” from UK investors
The Prime Minister and Chancellor of the Exchequer have challenged the UK’s institutional investors to support innovation and green recovery following the pandemic.
An open letter from Boris Johnson and Rishi Sunak has called on investors in the UK to support its long-term growth.
The letter, co-signed by the Prime Minister and Chancellor, stated: “It’s time we recognised the quality that other countries see in the UK, and back ourselves by investing more money into the companies and infrastructure that will drive growth and prosperity across our country…
“We want to see UK pension savers benefitting from the fruits of UK ingenuity and enterprise, being given the opportunity to back British success stories, and secure higher returns and better retirements.”
The letter comes ahead of the government’s Investment Summit in October at Downing Street, and as over eighty per cent of UK defined contribution pension funds’ investments are in mostly listed securities - which represent only twenty percent of the UK’s assets.
Andy Briggs, group CEO of Phoenix Group, commented: “We welcome the challenge letter issued by the Prime Minister and the Chancellor of the Exchequer today. Phoenix remains supportive of directing substantial long-term investment into infrastructure and housing, as well as providing early stage capital for companies, across all regions of the UK.
“We will continue to seek the best possible outcomes for our customers and our shareholders, and believe that investing in a sustainable long-term manner across a range of asset classes delivers this whilst also supporting the UK to build back better and greener.”
Anne Richards, chief executive of Fidelity International, added: “As both an asset manager and DC provider, we are committed to achieving the best outcomes for our clients and can see the benefits of making long term, less liquid assets available to both our DC and retail customers.
“We also believe our customers will welcome more choice and access to a wider investment universe. Making this a success will require a collaborative approach from a policy, regulatory, tax, industry and wider stakeholder perspective and we welcome the opportunity to work together to make it a reality.”
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