Foreign investors hold 1/3 of UK shares
Benefical ownership of UK shares: end 2004
Rest of the world investors owned 33 per cent of UK shares listed on the London Stock Exchange at the end of 2004, worth £483 billion; of this, £164 billion (34 per cent) was held by investors based in Europe. This is the largest percentage holding recorded to date for Rest of the world investors, up 0.3 per cent from 2003.
Between 1 January 2004 and 31 December 2004, the market value of the Stock Market increased by £112 billion to £1,480 billion, representing a rise in value of 8 per cent.
On 31 December 2004, UK individuals' holdings were worth £208 billion, or 14 per cent of all shares.
Almost 50 per cent of all ordinary shares listed on the UK Stock Exchange were owned by insurance companies, pension funds and other institutional shareholders. Together, these shareholdings were worth £722 billion, of which insurance companies owned £254 billion and pension funds £233 billion.
After a significant rise between 2000 and 2001 (5 per cent to 10 per cent), holdings of UK shares by 'other' financial institutions have stabilised at around 11 per cent for the last three years.
Banks own £40 billion (3 per cent) of UK shares - their highest proportion since the survey began in 1963.
The FTSE 100 companies continue to dominate the UK Stock Market. The proportion of funds invested in these companies varies between 65 per cent for individuals and 86 per cent by the overseas investors.
More generally the long term trend shows the percentage of shares held by rest of the world, or foreign, investors continues to increase, while the percentage holdings of individuals is decreasing.
Source: Office for National Statistics, Share Ownership 2004.
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.