Pension funds too reliant on equities

consultants argue that funds should shun equities in favour of asset classes such as property, high yield, emerging debt and hedge funds

Pension funds should diversify away from equities into asset classes such as property, high yield, emerging debt and hedge funds, according to Watson Wyatt. The pension consultants believe the investment environment is changing and the continued reliance by pension funds on equities and bonds to meet their liabilities has now exposed them to greater risks than at any point in the past 30 years. Roger Urwin, global head of investment practice at Watson Wyatt and author of the group's Global Investment Review 2003, said: 'In our view, pension funds should diversify away from equities into...