Pension funds 'reliant on equities' for security

According to a survey by Hewitt Associates, a total of 40% of schemes still have 70% or more of their assets in return seeking assets such as equities. John Belgrove, senior investment consultant at Hewitt Associates, says: “Much has been written about pension schemes selling equities and buying bonds. This has been driven by a heightened need for some schemes to manage more effectively shorter term risks relative to liabilities. However, what this research shows is that many trustees are still reliant on future equity returns as an integral element of their schemes’ recovery plans.” H...