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Pension funds turn away from equities

12 December 2007 / by None
Pension funds have reduced their equity allocations by almost seven per cent in the last year, according to new research.

According to Baring Asset Management, equity allocations for the funds have dropped from 70.8 per cent to 63.9 per cent,IFA Online reports.

There has also been a fast-growing trend towards allocating fund assets to hedge funds, which has increased from 17 per cent to almost 48 per cent, though overall this is still a low proportion of total assets, Barings suggested.

Korea and Hong Kong are markets to watch over the coming months, the company concluded.

Chief investment officer Marino Valensise said: "Schemes are clearly aware of the opportunities that exist in emerging markets and are more open to the options that are available to them in the alternatives space."

Barings recently announced it had won more than £500 million in assets from pension funds in the UK in 2007.

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