Investment of £19bn by insurance companies, pension funds and trusts
Total net investment by insurance companies, pension funds and trusts is estimated at £19bn in the first quarter of 2014, according to new research from the Office for National Statistics.
This figure is slightly above the five-year quarterly average of £17bn, and higher than the estimate of £14 billion for Q4 2013.
Businesses reported net investment in short-term assets (£10bn) in Q1 2014, compared with net disinvestment in Q4 2013 (£2bn). This may signal that businesses are remaining cautious and reluctant to commit to longer-term investment strategies.
Net investment in gilts is estimated at £3bn, indicating that some businesses, particularly pension funds and unit trusts, are continuing to avoid the relative volatility of equity markets.
In Q1 2014, net investment in overseas securities remained strong at £4bn, in contrast to net disinvestment of £7bn in UK corporate securities. This may continue to indicate that businesses have more confidence in their ability to make money from overseas securities than they do from UK corporate securities.
