Posted on 05/29/2010 8:57:31 PM PDT by Libloather
Private pensions to fund housing
Plan will offer lucrative returns on bonds linked to infrastructure projects
May 30, 2010
The Scottish and UK governments are to target private pension funds to raise capital for public-sector infrastructure projects.
Faced with swingeing budget cuts and a fall in bank lending, Alex Salmond and Vince Cable, the British business secretary, plan to offer private pension firms lucrative returns on government bonds linked to social housing, transport and green energy developments.
Currently, many of the funds, worth about £1 trillion, are investing in American corporate bonds that offer a higher rate of return than UK government bonds. Now ministers want to devise new investment vehicles, including bonds, providing comparable yields.
The money could be used initially to build social housing, which would ease the shortage of affordable properties and give the construction industry a welcome boost. Details of the plan are in a Scottish government discussion paper on funding new housing. It states: “There is an opportunity for institutional investors, such as pension funds and life companies, which have not traditionally funded the affordable housing sector, to consider doing so.
“Affordable housing is a low risk, ethical investment and there is the potential to develop suitable new products and routes that are attractive to institutions and other similar investors. The Scottish government is committed to removing barriers which hinder the development of new long-term funding options and put Scottish housing at a financial disadvantage.”
Scottish ministers are studying Welsh assembly plans for a housing investment trust to attract investment from pension funds and life companies.
The Welsh government believes that issuing housing bonds will help it to meet its target of building 6,500 affordable homes by next year.
(Excerpt) Read more at timesonline.co.uk ...
It was a good movie...:^)
The mob will smile, shake your hand, then rob you...
whilst the government will just rob you, then smile...
Either way, no KY for you...
The ONLY “ethical investment” is one that maximizes returns on the investors’ cash. When I want my money to do “good works”, I PERSONALLY choose to route it to the CHARITY of my choice. Not a so-called “ethical investment”. .
Well stated. Two separate goals and two separate ways to acheive each goal. Lack of goal clarity and focus means neither will be accomplished.
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