Swing towards bonds continues

survey highlights falling proportion of equities held in pension funds and rising bond share

Investors are continuing to shift asset allocation from equities to bonds in a process driven by the pension and insurance funds that make up almost three-quarters of the industry. According to the IMA's 2004 Asset Management Survey, insurance funds, which make up 39.02% of the £1.08 trillion of funds managed in the UK, had around 50.7% in bonds at June 2004, with 14.1% in overseas equities and 18.8% in UK equities, a slight swing towards fixed interest compared to the previous year. But the big shift was from the asset allocation of pension funds, 34.4% of the UK asset management industr...