New Capital Consensus are delighted to follow up on an excellent turnout for our webinar on 10th September on how the UK can rebalance its US-dominated institutional capital flows. The session delved into the systemic factors that drive UK pension funds overseas and the effect this has on the domestic investment system and outcomes for members.

You can watch a recording of the session HERE.

The webinar focused on the issue of UK pension funds' investment flows, particularly the significant shift from UK to overseas assets, predominantly US tech stocks. NCC Director Ashok Gupta and Simon Ellis discussed the problems arising from this trend, including the undermining of the UK economy and a misalignment with savers' expectations. They explored the systemic causes, such as industry consolidation and benchmarking practices, which have created a "doom loop" away from domestic investment. The panel debated potential solutions, with Ashok advocating for tax incentives like an exit tax to encourage investment in UK productive assets, while Simon suggested altering tax reliefs as a less drastic measure. They also highlighted role models like Nest in the UK and the Canadian pension system for their long-term, productive investment approaches. The discussion touched on the need to redefine value for money and fiduciary duty to better align with societal and economic goals.

A huge thank you to Alan Livsey (Pensions Editor, Financial Times), Simon Ellis (Chair of a major DC Master Trust) and Ashok Gupta (Director, New Capital Consensus) for their expert leadership of the session. 

 

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