Engaged Investor’s research into the top 100 DB schemes finds that bond allocations have doubled in 2014
Engaged Investor’s data on the top 100 schemes suggests their exposure to domestic equities, in terms of the proportion of their portfolios accounted for by such holdings, fell by 1% over the course of 2014, while allocations to overseas equities were also broadly flat, registering a rise of just 1%.
Bond allocations, by contrast, more than doubled in size, with particularly heavy investments seen in index linkers and government stock. Similarly, pension schemes’ cash holdings were up by more than 70%.
In the alternative investments space, the proportion of the typical scheme’s portfolio accounted for by private equity investment was up by 43%, infrastructure had a 32% boost and both hedge funds and real estate were up by 18%.
Download the full report here