Pension funds still favour UK equities

The average UK pension fund has over 53% allocated in UK equities, a survey by Watson Wyatt has found. Overseas equities comprise the next largest asset class of the average pension fund, the survey found, with an average 24% allocation. UK bonds were next with 8%, followed by overseas bonds, at 7.8%, cash and other investments, at 4%, and real estate, at 2.9%. The capital under management in pension funds in the UK totalled $1,658.4bn as at 31 December 2001. This was more than double the next largest total within Europe, the Netherlands, with £654.2bn. Within the UK, the s...