Asset Allocation

Focus switches to active fixed income; Reductions in equity exposure to continue

Andrew Benton argues that dynamic asset allocation is a key part of protecting the purchasing power of investors' money

The UK's biggest defined benefit schemes have knocked £40bn off their deficits over the past year, as stronger equity performance pulls schemes towards full funding, figures show.

UK - Pension trustee boards continue to struggle to make swift changes in allocations to new asset classes, research by Aon Hewitt shows.

Schemes must factor in climate change risk to their asset allocation strategies over the next two decades or face losing trillions of pounds, Mercer warns.

AllianceBernstein is to launch a range of off-the-shelf target date funds for trust and contract- based defined contribution schemes.

Schemes should concentrate on asset allocation and fees not manager selection, Evercore Pan Asset says.

The Leicestershire County Council Pension Scheme has challenged Aegon Asset Management to deliver £10m annual investment outperformance after handing the firm a £2bn asset allocation mandate.

Manufacturing firm Molins has awarded Aegon Asset Management a £300m mandate to overhaul its scheme investments.

GLOBAL - Pension funds should be investing at least 50% of their assets in emerging markets, Ashmore head of research Jerome Booth suggests.