This inaugural Financial Investment Report from UK Government Investments brings together data from government departments, arm’s length bodies and designated public financial institutions to analyse the UK government’s £203bn loan and equity portfolio.
This report aims to:
- Examine how government manages its investments and examine the expanding role of public financial institutions in delivering transactions (Chapter 2).
- Quantify the aggregate value of the government’s financial investments portfolio, as reported by public bodies, and comment on the valuation methodologies used (Chapter 3).
- Explore the performance of government’s financial investments, based on returns made (where appropriate) and other key metrics (Chapter 3).
- Understand how risk is managed within the portfolio and examine the level of risk held by government (Chapter 4).
- Identify how government can improve the monitoring and management of its financial investments (Chapter 5).
This work demonstrates government’s commitment to provide increased transparency around central government’s investments as set out in the Financial Transaction Control Framework.
Financial transactions, including loans and equity investments, enable government to deliver policy impact in conjunction with commercial investors. To ensure public funds are invested sustainably, the Financial Transaction Control Framework established a requirement for UKGI to publish an annual investment report. Following close working with partners in central government departments, public financial institutions, and across wider government, I am pleased to present this inaugural Financial Investment Report.
This report is a significant step forward in providing increased transparency around central government’s investments. Through this report we have sought to establish a baseline understanding of the value, risk and performance of government’s investment portfolio. This will help inform targeted decisions on the management of government’s portfolio.
– Siobhán Duffy, Director of UKGI’s Financial Instruments and Transactions Advisory Group (FInTAG)
The Financial Instruments and Transactions Advisory Group (FInTAG) is an analytical and advisory unit within UKGI. FInTAG has been established to strengthen expertise on contingent liabilities, loans and equity investments within government.
This report is one facet of FInTAG’s work to examine, report and advise on government’s exposure to contingent liabilities and its commitment to financial investments, with the overriding ambition to improve decision making.
Read more about FInTAG’s work on the website page – Financial Instruments and Transactions – UK Government Investments (UKGI).