Total net investment by insurance companies, pension funds and trusts was £10.7 billion in the third quarter of 2005. This is £0.6 billion higher than the figure for the second quarter. Net investment in British government sterling securities and other assets rose in the third quarter by £8.7 billion and £1.8 billion respectively. Net disinvestment in UK company securities of £3.5 billion compared with £4.4 billion in the second quarter. The increase in net investment was partly offset by falls in net investment of £6.3 billion and £4.5 billion in short-term assets and overseas securities.
In the third quarter of 2005 long-term insurance funds reported net investment of £0.4 billion. This is £2.3 billion lower than the figure for quarter two. General insurance funds showed a net investment of £3.9 billion compared to net investment of £3.5 billion in the previous quarter, while net investment by self-administered pension funds rose by £4.5 billion to £4.8 billion. Investment trusts reported net disinvestment of £0.5 billion in the third quarter compared to a net disinvestment of £1.0 billion in the second quarter, Net investment by unit trusts and property unit trusts decreased by £4.5 billion from £10.4 billion in the second quarter to show a net investment of £5.8 billion in the third quarter of 2005.
At the end of 2004, institutions’ total identified assets were valued at £1942.8 billion compared with £1811.1 billion at the end of 2003; this represents an increase of 7.3 per cent.
Revisions to the series for 2004 have been caused by incorporating the results of the 2004 annual insurance and pension funds surveys. As part of the processing of these results, discrepancies in the returns of individual contributors are identified and corrected by comparing their quarterly and annual returns.
Total net investment in 2004 has been revised up to £61.0 billion from £59.3 billion published last quarter. The major revisions are in net investment in short-term assets and other assets, rising by £1.0 billion and £0.9 billion respectively.
Figures for the first two quarters of 2005 have also been revised, partly as a result of late questionnaires being received and partly as a result of disaggregate data revisions. Net investment in the first quarter of 2005 has been revised from £12.8 billion to £11.8 billion and in the second quarter from £8.8 billion to £10.1 billion.
Notes: The dataset brings together information on the investments made by institutions whose primary business is the investment of funds in the financial markets. It draws on data compiled from a series of quarterly and annual sample surveys.