U.K. institutional investors made L22.7 billion ($35.1 billion) in new investments in the second quarter, with most going to defensive securities rather than stocks, according to a report from Britain's Office for National Statistics. That was a L13.7 billion increase over the second quarter of 2001.
Pension plans, money managers and insurance companies cut their investments in overseas equities by almost half in the second quarter, compared with the second quarter of 2001, while investments in U.K. gilts increased almost threefold, according to the report. Investments in U.K. stocks, at L6.9 billion as of June 30, were down by L1.8 billion from the same period in 2001. Total investment in gilts rose by L3.7 billion, to L5.6 billion. Investments in short-term securities increased by L8.6 billion, to L3.7 billion, for the same period.