Dame Julia Hoggett, the chief executive of the London Stock Exchange, has responded to criticism regarding the FTSE 100’s composition, labeling it as “lazy” and “not true.”

In her remarks, Hoggett emphasized that there is “not any truth at all” to claims that London’s markets are outdated and unattractive to growth-oriented companies.

Responding to Sir Martin Sorrell’s description of the FTSE 100 as a “museum” due to UK investors favoring traditional sectors like mining and oil, she stated, “I’ve heard that same narrative. However, a deeper analysis reveals that it is not accurate at all.”

She acknowledged that while comparisons can be drawn between the historical composition of the FTSE and Nasdaq, the performance of companies with similar growth trajectories in the UK and the US shows that many are trading at high multiples in both markets.

This ongoing debate about the valuation of UK stocks versus their international counterparts has been central to criticisms of UK markets, especially during a time characterized by a scarcity of public listings and numerous delistings. The perceived lack of high-value technology stocks in the UK is often cited as a significant factor contributing to the underperformance of these markets.

During her discussion at The Times Tech Summit, Hoggett mentioned that comparisons of index valuation multiples “do not provide meaningful insights” for individual companies, rendering such comments essentially irrelevant.

She pointed out the success of Raspberry Pi, a computing firm that has thrived since its recent flotation, noting that it attracted mainly UK investors who are interested in long-term growth. Hoggett remarked on the increased enthusiasm among UK institutions to diversify their investments into technology, which has historically seen lower representation due to the traditional composition of the UK markets.

Hoggett criticized the notion of referring to the FTSE as a “museum,” deeming it a “shortcut and a lazy thing to say.”

Despite recognizing that UK investors have historically been too “impatient” in developing large technology companies, she indicated that efforts are being made to improve this situation. These include reforms aimed at encouraging UK pension funds to invest more in growth companies and adjustments to listing rules to enhance the appeal of London markets for entrepreneurial ventures.

She highlighted the need to change the perception surrounding the FTSE’s attractiveness for growth companies, citing that over the past decade, only 20 UK firms have gone public in the US and raised more than $100 million, while eight have delisted, casting doubt on the narrative of UK market inferiority.