Asset managers to invest 9 billion pounds in UK firms and projects

LONDON (Reuters) Six asset managers will put about 9 billion pounds over the next five years into high yielding investments in British companies, schools and roads following tax changes, a funds industry Canada Goose Online body said on Thursday.

A worker walks inside the Standard Life House Canada Goose Parka in Edinburgh, Scotland February 27, 2014. REUTERS/Russell Cheyne

Chancellor George Osborne announced on Wednesday that interest accrued on private placement investments, a form of long term, canada goose coats on sale non bank debt financing canadian goose jacket for smaller firms and infrastructure projects, would be Canada Goose Outlet exempt from withholding tax.

Allianz Global Investors, Aviva, Friends uk canada goose outlet Life, Legal and General, Prudential and Standard Life all canada goose black friday sale fund management arms of insurers intend to make investments totalling around 9 billion pounds in private placements and canada goose clearance sale other direct lending to British firms, Canada Goose Jackets the Investment Management Association (IMA) said.

(tax) measure, announced yesterday in the Autumn Statement, is a significant boost to the development https://www.canadagoose-online-shop.co.uk/ of the UK private cheap canada goose uk placement market, unlocking crucial capital for UK businesses, said IMA Chief Executive canada goose coats Daniel Godfrey.

Insurers and pension fund managers are keen to invest in canada goose clearance such long term investments as they match their long term liabilities in pensions and savings.

The illiquid nature of the infrastructure buy canada goose jacket cheap projects gives them higher yields than long Canada Goose sale term government debt, but asset canada goose factory sale managers complain a shortage of viable projects has made this a crowded trade, reducing returns.

Osborne Canada Goose Coats On Sale said the fund managers decision would attract further investment to Britain and increase credit to buy canada goose jacket companies.

also signals the potential beginnings of an enduring private placement market for the first time in the UK, Osborne said in a statement.

The European Union financial services chief Jonathan Hill is due to announce plans for a capital markets union (CMU) that is Canada Goose online expected to canada goose include initiatives to boost private placements in a bid to reduce the region reliance on banks for funds.

Allianz said it would invest upwards of 3 billion pounds over the next three to canada goose uk black friday five years in UK canada goose store infrastructure, with 600 million pounds invested by the end of 2014. It said website it would invest in projects including uk canada goose roads, schools cheap Canada Goose and hospitals, and water and energy assets.

Aviva said it would make an immediate allocation of 500 million pounds in British infrastructure, following a 500 million pound canada goose uk outlet allocation made a year ago.

Friends Life, which this week agreed to be taken over by Aviva in a 5.6 billion pound deal, said it had already allocated over 1 billion pounds to private placements, including a 500 million infrastructure canada goose uk shop mandate, and the tax changes would enable it to carry out more deals.