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Impact Investing

IPE special report May 2018

Sections

UK institutions raise net investment by e13bn

UK – Net investment by UK pension funds, insurers and trusts was nine billion pounds (13 billion euros) higher in 2002 than in 2001.

According to the UK’s statistics office, insurance companies, pension funds and trusts invested 62.4 billion pounds in 2002, compared to 53.5 billion pounds in 2001.

There were significant changes in investment by asset type in 2002.

Net disinvestment in short-term assets in 2002 was 3.8 billion pounds compared to 5.6 billion pounds the year before. In the fourth quarter of 2002, net disinvestments in short-term assets totalled 700 million pounds, compared to net investment of 5.7 billion pounds in quarter three. Long-term insurance funds saw the largest fall.

Net investment in British government securities totalled 11 billion pounds in 2002, increasing by 5.3 billion pounds between the third and fourth quarters. The major changes were in net investment by long-term insurance funds and self-administered pension funds. The interest in the asset class differs sharply to that demonstrated in 2001, when there was a net disinvestment of 5.6 billion pounds.

Net investment in UK company securities fell in 2002 to 19 billion pounds from almost 29 billion pounds in 2001. In the fourth quarter of 2002 investments in UK company securities fell 4.6 billion pounds from the previous quarter. The largest fall was by long-term insurance funds, whose net investment decreased by three billion pounds.

This was partly offset by self-administered pension funds’ net investment which increased by 1.4 billion pounds in the last quarter.

In overseas securities there was little change in investments both between 2001 and 2002 and the third and fourth quarters of 2002. Net investment of 29.2 billion pounds was registered for 2002, 5.7 billion pounds of which was made in the last quarter. This reflected an increase of 1.3 billion pounds in net investment by self-administered pension funds offset by unit trusts showing a decrease in net investment of 1.5 billion pounds.

The data is compiled from a series of quarterly and annual sample surveys.


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