Investment by insurers and pension funds far higher than five year average

Investment by insurers and pension funds is significantly higher than five year average and the largest quarterly estimate since 2009.

Figures from the Office of National Statistics (ONS) show total net investment of £35bn by insurance companies, pension funds and trusts in the second quarter of 2013.

This is the largest estimate since 2009's second quarter and much higher than the five year average for this quarterly series of £15bn.

At Q2 2013, net investment in overseas securities was strong (£11 billion) in comparison with the estimate for UK corporate securities (£2 billion). This indicates that businesses may have more confidence in their ability to make money from overseas securities than they do from UK corporate securities.

The net investment data for Q2 2013 would seem to suggest that investors are continuing to switch back to gilts in recent quarters, possibly in an attempt to beat the volatility of equity markets.

The estimated level of net investment by self-administered pension funds for Q2 2013 (£17 billion) is a quarterly record for this series, which goes back to 1983.