U.K. institutions' total net investment fell to 10.2 billion ($16.1 billion) in the second quarter, down from a record net investment of 14 billion ($22.1 billion) in the first quarter of 1994, according to the U.K. government's Central Statistical Office.
Net investment in British stocks in the second quarter rose to 6.3 billion from 6 billion the previous quarter, but net investment in overseas stocks dropped to 809 million from 3.2 billion. U.K. institutions continued to sell foreign government bonds, with a net disinvestment of 456 million, but much less than the 1.2 billion net selloff in the first quarter.
Institutions ran down their cash holdings by 1.6 billion, after building them up by 900 million in the first quarter.
Net investment by U.K. pension funds fell to 900 million from 1.6 billion.
British pension funds pumped 2 billion into U.K. stocks - their highest investment in British equities since the fourth quarter of 1991 and a marked shift from selloffs in the previous three quarters. Pension funds sold a net 1.1 billion in overseas securities and 600 million in other assets.
