§ Mr. Edgeasked the Chancellor of the Exchequer what proportion of institutional funds was invested in manufacturing industry in each of the last 10 years.
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§ Mr. Denzil DaviesThe available information is set out in the table below. It relates to the investments of insurance companies and pension funds in company securities, including the securities of non-manufacturing companies. Since the securities of manufacturing companies form a considerable majority of all United Kingdom company securities, it is reasonable to assume that institutional investment in company securities is predominately in those of manufacturing companies. It should be noted that the net acquisition of company securities by institutions includes both subscriptions to new issues of capital and transactions in existing securities; these two components cannot be separately distinguished. Also, the figures include a small element of investment in overseas company securities by insurance companies; such investments by pension funds have, however, been excluded.
INSURANCE COMPANIES AND PENSION FUNDS Net acquisition of company securities (A) Total identified net investment (B) (A) as a percentage of (B) £ million £ million 1965 595 1,087 55 1966 667 1,112 60 1967 537 1,207 45 1968 751 1,404 54 1969 629 1,361 46 1970 793 1,645 48 1971 886 1,966 45 1972 1,368 2,545 54 1973 775 2,853 27 1974 180 3,222 6 Source: Financial Statistics, June 1975, Tables 75, 77 to 79 and unpublished data relating to pension funds' investment in overseas securities.