Pension schemes experienced their highest volatility levels since June 2001 last month, according to Aon Consulting.
Aon equals the volatility to average daily swings of more than £10bn, which it says poses problems for short-term company reporting and those schemes looking to settle liabilities in the near future. The Aon200 Index, which tracks the surplus or deficit in the 200 largest UK privately-sponsored pension schemes, fell from a £2bn deficit at the end of December 2007 to a £10 deficit at the end of last month, with only 40% of schemes in surplus. The consultancy attributes the volatility to high levels of equity investment during an already volatile period. It says some schemes could have di...
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