Social investment funds welcome 'licence to print money'?

Social investments funds may have welcomed the comments of chancellor of the exchequer George Osborne, who last week implied the Bank of England will engage in fiscal easing if necessary.

Speaking on Friday (November 5th), the politician suggested money would be injected into the economy if recovery appears to be faltering, saying monetary policy is the main tool at the government's disposal.

The news may be good for social investment funds, as increased liquidity could support the placing of assets in such vehicles, as well as easing wealth management concerns and potentially increasing the popularity of socially responsible investment.

He commented: "Fiscal credibility allows the Monetary Policy Committee to do what it has to do, raising interest rates, lowering interest rates or using any other monetary policy tool. It gives … flexibility."

And social investment funds could be supported by perceptions of government willingness to intervene to support the economy, which may encourage those with private wealth to explore non-traditional management strategies.  ADNFCR-2318-ID-800222372-ADNFCR