Share Ownership
Foreign investors hold 2/5 of UK shares
Benefical ownership of UK shares: end 2006
Investors from outside the UK owned 40 per cent of UK shares listed on the UK Stock Exchange at the end of 2006. This was up from a 36 per cent share at end-2004.
At the end of 2006 the UK Stock Market was valued at £1,858 billion – an increase of £378 billion (26 per cent) since the end of 2004.
Rest of the world investors now hold £742 billion of UK shares – up from £538 billion at the end of 2004. Of this, £245 billion (33 per cent) was held by investors based in North America. The increase since 1994 (when foreign investors held 16 per cent of UK shares) partly reflects international mergers where new companies are listed in the UK, flotation of UK subsidiaries of foreign companies in which the parent has retained a significant stake, and companies moving their domicile to the UK.
UK individuals owned £239 billion of shares (13 per cent) down from 14 per cent in 2004.
Insurance companies owned £273 billion (15 per cent) - down from 17 per cent in 2004. The percentage holdings of pension funds have also reduced to 13 per cent (£236 billion) from 16 per cent in 2004. Since 1999 there has been a trend for pension funds to move towards bond investment, and some pension funds have moved away from equities entirely.
After a significant rise between 2000 and 2001 (3 per cent to 7 per cent), holdings of UK shares by ‘other’ financial institutions’ have gradually increased to 10 per cent (£179 billion) at the end of 2006.
Banks own £63 billion (3 per cent) of UK shares – their highest proportion since the survey began in 1963.
FTSE 100 companies continue to dominate the UK Stock market. The proportion of funds unvested in these companies varies between 58 per cent for individuals and 83 per cent by overseas investors. Overall 76 per cent of equity investment is in FTSE 100 companies.
More generally the long term trend shows that the percentage of shares held by foreign investors and 'other' financial institutions continues to increase while the percentage holdings of individuals, insurance companies and pension funds is decreasing.
Source: Office for National Statistics, Share Ownership 2006.
'Ordinary shares' are the most common type of share in the ownership of a corporation. Holders of ordinary shares receive dividends.
Rest of world investors are equivalent to foreign investors.
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Share Ownership Report