Banking on equities

According to the June 2007 Lipper Life Office Asset Allocation Analysis report, £121 billion was invested across the 147 funds that report their full holdings in the balanced managed pensions sector. This is a huge amount of money in a hugely popular sector for UK retirement. However, investors in these funds may not be aware that they are placing a heavy reliance on the performance of a single asset class for their retirement nest egg. While "balanced" and "managed" may sound reassuring, the reality is that funds in this sector often have a very high equity concentration. The average equ...