Pension funds shift to bonds cost £6bn - IMA

Details of the members’ study – which analyses assets under management and allocations up to June 2004 from responses of 45 groups – reveals despite the rise in interest in equities, many pension funds made a gradual shift towards bonds to reduce the risk of potential losses to defined benefit funds, at the same time as the FTSE 100 (equities) index rose 11% year-on year between June 2003 and June 2004. According to the survey, the 133 members of the Investment Management Association managed £2.16 trillion in the UK and £7.87 trillion in 2004, however, pension fund assets account for 60%...