Coutts, a renowned private bank with a 332-year history, is under fire from City officials for its decision to withdraw approximately £2 billion from London’s stock market.
On Thursday, Coutts announced its intention to reduce its investment in UK stocks from 33 percent of its portfolio to a mere 3 percent, reallocating these funds to international equities.
Under the new strategy, 65 percent of Coutts’ assets will be invested in North American stocks and 13 percent in European stocks. The bank currently manages about £10 billion in total assets.
This move coincides with the government’s efforts to revitalize London’s struggling stock market through various capital market reforms, including the introduction of a British ISA.
Additionally, the government plans to sell part of its remaining 28 percent stake in NatWest, Coutts’ parent company, to retail investors potentially as soon as this summer.
A Coutts spokesperson said on Thursday: “We retain significant investment in the UK and our investment strategy is to achieve the best returns for our clients in the most attractive markets.
“We closely follow the performance of all markets in line with our individual client needs and our House Views are subject to constant review.”
