UK equities feel passive pressure

The UK government’s Mansion House reforms look to unlock pension capital and domestic investment. However, it will take more than policy changes to fix the key issue with capital markets; passive model-driven structures are draining them. Since the Retail Distribution Review in 2012, the financial advice industry has increasingly adopted model portfolio solutions, discretionary fund managers, and low-cost multi-asset platforms for client investments. As a result, portfolios have become more global, leading to a sharp fall in UK equity exposure within defined contribution pensions. The 2025 Mansion...