UK - Net investment by self-administered pension funds increased by £14.8bn over the first quarter of 2009 to show a net result of £2bn (€2.33bn), the Office of National Statistics (ONS) has revealed.

Figures from its quarterly update on Investment by insurance companies, pension funds and trusts showed the total net investment for these institutions was estimated at £10.7bn, a rise of £36.5bn from the net disinvestment of £25.8bn recorded in the last three months of 2008.

Self-administered pension funds - those managed by scheme trustees or investment managers - recorded an estimated £14.8bn increase as it achieved a net investment in the quarter of £2bn against a disinvestment of £12.8bn in the fourth quarter of 2008.

Figures showed over 2008 as a whole the pension fund sector reported a total divestment of £20.7bn, but the figures for 2009 are already ahead of last year with an investment figure of £2bn in the first quarter compared to  divestment of £5.3bn in the same period in 2008.

The ONS figures showed net divestment in British government sterling securities of £300m, an improvement from the divestment of £9.4bn in the fourth quarter of 2008, with investment by unit trusts and long-term insurance funds offset by divestment by pension schemes of £1.1bn respectively.

Pension funds also reported a disinvestment in UK company securities of £3.5bn, partially offsetting increased investment by other institutions, while the figures showed the pension sector increased its net disinvestment from overseas securities to £3.1bn in the quarter.
The latest figures form the ONS follows the updated chapter 12 of its pension trends series in which it revealed total income for self-administered pension funds dropped to £62.8bn in 2007. (See earlier IPE article: Scheme costs drop 4.7% as buyouts increase)

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