26/07/2013
38% of pension funds play multi-asset defense against volatility
P { margin-bottom: 0.08in; }A:link { } According to a survey undertaken by Baring Asset Management, two thirds (66%) of pension fund managers are currently concerned about the high level of volatility on the markets, and 22% of them are of the opinion that increases in volatility are becoming more of a concern than an opportunity.In addition, Barings has been able to determine that nearly two fifths (38%) of professionals surveyed are planning to ease the impact of volatility by moving their portfolio to multi-asset class products, while 19% of pension funds are already invested in funds of this type. Overall, 70% of pension funds are using multi-asset class strategies, which include a performance objective, a diversified growth allocation and a dynamic asset allocation. Only 65% of respondents said so in the November 2012 survey. Lastly, Barings reports that 46% (compared with 43%) of pension fund managers have increased their exposure to diversified growth funds. The survey also finds that pension funds tend to position themselves on emerging markets via multi-asset class vehicles: 14% use this means to expose themselves to emerging market equities, compared with 11% in the previous survey.
