Aon: pension schemes shift to bonds

by Richard Kilner

Story link: Aon: pension schemes shift to bonds

Aon Consulting has released research which reveals that during the course of the last year almost half of pension scheme managers have made a move from equities to bonds.

The firm conducted a survey of more than 100 managers, questioning the respondents upon changes that had occurred over the last 12 months.

Of the 46% who reported an investment shift from equities to bonds, half reallocated a major shift (over 10% of growth assets), with the other half a minor shift.

However, a slim majority (54%) had made no changes at all to their investment approach.

The research also uncovered the fact that in a bid to reduce risk without reducing returns, pension schemes now utilise a broader range of asset classes.

The strategy is unsurprising as pension schemes seek to reduce volatility, according to consultant and actuary Daniel Peters.

Of the non-equity assets, property remains the most popular, with 44% of schemes holding it.

Private equity/hedge funds are also popular, with 40% adopting them.