Have you ever wondered what happens to people’s money once they invest with an insurer or asset manager? What is the difference between investing money with these companies rather than saving money in the bank?
Savings can sometimes be seen as a bad thing and can be characterised as ‘taking money out of the economy’. In fact the opposite is true as investing allows money to flow from consumers into productive and innovative projects. Before too long, people will benefit from this investment, whether it is a new start-up company, an energy efficient office block or better broadband.
Aviva Investors invests money on behalf of Aviva policyholders and other bodies like pension companies. One of the areas it invests in is economic infrastructure (e.g. rail, energy, water) and social infrastructure (e.g. housing, schools and hospitals). The financing of these projects allows them to be built now, so people can benefit immediately, and then they are paid off over time. The returns on the investments then allows Aviva to, for example, provide a retirement income to customers. It’s a virtuous circle that benefits policyholders, society and the economy.
For example, last year Aviva Investors provided financing to enable the construction of a new acute hospital at Dumfries. The hospital will have 344 single rooms, an emergency care centre and a new combined theatres complex. Staff residences, a heli-pad and 980 parking spaces will also be part of the complex. New models of care and the latest technologies will enable staff to provide patients with the highest standards of care.
The delivery of the new £200m hospital will bring other benefits to the region, including the creation of 150 new jobs, 36 apprenticeships, and opportunities for SMEs to tender for contracts. Construction is going well and the hospital is on track to open in autumn 2017.
This is just one example of the many investments we have made in hospitals and schools up and down the country. So, the next time you see a refurbished school or a new GP surgery in your area, remember that it might have been your money that helped build it!