Half of DB schemes reduce equities exposure

A survey of more than 300 defined benefit (DB) pension schemes shows 47% have reduced their equities allocation while 34% have increased the proportion devoted to fixed interest investments. A total of 55% of DB assets remain invested in equities, down from almost 60% in 2006. Members have invested 29% in fixed interest assets, up 3%, and 16% in alternatives and cash, also up 3%. The proportion investing in hedge funds has risen from 8% to 17% since 2005 while the proportion of schemes investing in property has risen from 50% to 60% over the same period. Joanne Segars, chief executi...