Why are many of the UK Pension Funds getting into Classic Cars ?

Why are many of the UK Pension Funds getting into Classic Cars, and what will the impact be ?

We have noticed a great deal of activiity on behalf of many of the major British and Irish pension funds in recent months, and have seen a significant rise in their participation in the purchase side of the Classic Car Industry. We have found that the level of enquiry from those connected with pension funds has risen dramatically during late 2014, and into early 2015.

On the 6th of April, 2015 new pension rules come into force in Britain that mean that a person over the age of 55 years can draw down all of their DC (Direct Contribution) pension pot, with the first 25% being totally tax free. These folk will be able to use the funds for any purpose that they wish, and so it is little wonder that the leading pension funds are becoming so active in the Classic Car sector.

Clearly there is about to be an injection of "New money" into the UK economy that was previously locked into various investments around the globe through the respective pension funds, and so the managers of the more forward thinking funds will have to firstly work hard to hold onto the monies that they already under their control. Secondly, they are now going to have to invest in the sorts of assets that are returning the highest yields in order to remain competitive. 

All of this leads to Classic Cars, because as we now know, the yearly yield in the sector is higher than almost every other form of investment, including gold, and definitely a long, long way ahead of shares and property. 

Therefore, the impact upon the Classic Car Industry of the new changes to the UK pension rules will be that a great deal of previously unseen revenue will flow into Classic Cars, which will have the effect of pushing prices up still further.   

After all, UK Pensions Minister Steve Webb did mention last year that pensioners could be out buying Lamborghini's.........