Pension funds seek solace from economic crisis in bonds

Latest Aon research shows almost half of defined benefit pension managers have moved from equities into bonds over past 12 months

Worsening economic conditions have forced pension funds into bonds over the last 12 months as they seek greater diversification, research from Aon Consulting has revealed. The group's analysis revealed almost half of defined benefit pension managers across the UK have reallocated investments from equities to fixed interest over the period. This figure is split between groups revealing major and minor shifts into the asset class. Overall, the survey found schemes adopting a wider range of 'diversifying' asset classes, used to reduce investment risk without cutting expected returns. U...