striking the right balance

Traditional ways of determining asset allocation in a pension portfolio are being replaced by new me...

Traditional ways of determining asset allocation in a pension portfolio are being replaced by new methods. These include stochastic modelling, routinely used by banks and life companies to measure and manage investment risk. Now that it is becoming available to IFAs and their clients it will allow them to better match pension fund asset allocation with a client's risk appetite. But despite such innovations it may still be wise for pension funds to favour UK equities as they have done until recently. Equities have historically performed better than bonds, even if the FTSE 100 has recently do...