WIREDGOV

Key Points

• Total net investment by insurance companies, pension funds and trusts is estimated at £15 billion in the second quarter of 2014, slightly below the five-year quarterly average for this series (£16 billion).
• Businesses reported net investment in short-term assets (£5 billion) in Q2 2014, following substantial net investment in Q1 2014.
• Net investment in gilts is estimated at £4 billion, indicating that some businesses (particularly pension funds) are continuing to avoid the relative volatility of equity markets. Self-administered pension funds reported net investment in gilts of £8 billion in Q2 2014, the largest investment in gilts by this institutional group since the time series began in 1963.
• In Q2 2014, net investment in overseas securities remained strong (£4 billion) in contrast to net disinvestment of £4 billion in UK corporate securities. This continuing trend may indicate that businesses have more confidence in their ability to make money from overseas securities than they do from UK corporate securities.