29/05/2012
British pension funds face diversification crunch time
A growing number of British pension funds are diversifying their assets to protect themselves against market volatility, according to a survey by Baring Asset Management. The survey was undertaken between mid-April and mid-May, and covered a sample of 99 fund managers or public or private British pension programmes. Nearly 64% of respondents said they were interested in asset diversification strategies to combat volatility, compared with only 47.6% six months earlier.They survey also finds that 51.1% of respondents revise their portfolios more regularly, compared with 42.9% at the last half-yearly survey.34% of respondents also rely on multi-asset class products, compared with 26.2% previously. But the most significant change, at four fifths of respondents, has been an increase in exposure to alternative management, including real estate. One investor in three, however, has reduced exposure to equities.
