UK - Self-administered pension funds increased net investment by £3.4bn (€3.7bn) in the second quarter of this year, according to latest figures from the Office of National Statistics (ONS).

Findings from its quarterly release 'Investment by insurance companies, pension funds and trusts', showed in the three months from March 2009 the total net investment by these institutions is estimated to have increased by £23.5bn.

Overall investment in overseas securities posted the biggest rise of £11.5bn, while the ONS highlighted smaller net investment increases in UK company securities of £1.1bn, while UK government sterling securities saw a rise in investment of just £100m.

Short-term assets saw the only overall divestment from all institutions over the period, dropping from £2.9bn to £900m, as other assets also reported a £2.5bn increase in net investment.

Figures showed self-administered pension schemes - those managed by trustees or investment managers - reported net investment of £3.4bn in the second quarter to bring total investment to £5.5bn, compared to the £16.8bn divestment recorded at the end of 2008.

A breakdown of the investments by asset type showed self-administered pension funds decreased investment in short-term assets by £2.8bn to £6.89bn, from £9.68bn, at the end of March.

Pension fund investment in UK company securities rose by £2.4bn in the second quarter from -£2.1bn to £304m, but while net disinvestment in overseas securities reduced from -£6.8bn to -£2.6bn the disinvestment from UK government sterling securities worsened moving from -£470m to -£1.28bn. 

If you have any comments you would like to add to this or any other story, contact Nyree Stewart on + 44 (0)20 7261 4618 or email nyree.stewart@ipe.com

Topics