Schemes make record gilts investment, and three other key ONS charts

Schemes invested heavily in fixed income assets – including government, corporate and overseas bonds – last quarter. Anticipated rate rises, schemes derisking out of equities and even switching from synthetic to real gilt holdings have all been investment drivers.

Data released by the Office for National Statistics show investment in gilts, including index-linked gilts, remained high in the second quarter of this year, with schemes ploughing £8.3bn into the asset class. Following a strong Q1 when £7.9bn was allocated the Q2 figure is the largest since this series of data began in 1963.

Schemes invested more than £6bn in non-indexed gilts of varying maturities, up from £2.7bn in the first quarter of the year. However, investment in index-linked bonds was down, with slightly more than £2bn invested, compared with more than £5bn in Q1. 

Schemes also increased investment in corporate bonds, with almost £900m invested in UK corporate bonds and more than £2bn in overseas assets. 

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