Net disinvestment of £34 billion was reported by insurance companies, pension funds and trusts in Quarter 4 (Oct to Dec) 2018; the largest since the start of this series in 1987.
This was the first time since comparable records began in 1987 that four consecutive quarters of net disinvestment have been reported by these institutions; to put this into context, the five-year quarterly average for this series is net investment of £1 billion.
In Quarter 4 2018, the overall net disinvestment of £34 billion by these institutions was caused mainly by net disinvestment in overseas securities (£36 billion) and short-term assets (£9 billion), offset in part by net investment of £7 billion in other assets (mainly mutual funds) and UK corporate securities (£4 billion).
Investment choices of financial institutions based on financial transactions (investments and disinvestments), including balance sheet data for short-term assets and liabilities, and income and expenditure data.
Using information from the national accounts, this article addresses 2 questions of interest for the UK economy: how much money is there in funded pensions and insurance and how has this picture changed over time?
Contributions to private (non-state) pensions. Private pensions considered are: occupational schemes for private sector and public sector employees; and personal pensions, including group personal and stakeholder pensions.