Bond mentality should not unduly influence individual allocation

Although there has been a general move towards bond funds in DB pension schemes, this low-risk strategy is not applicable to the younger investor

While it is understandable for private investors to take note of trends in the institutional market, it would be a terrible mistake to allow the Boots pension fund bond mentality to unduly influence the asset allocation of individual pension funds. The important point for individual investors to appreciate is that this trend among defined benefit (DB) pension schemes is not just a reaction to market volatility. An individual pension fund client who expects to purchase an annuity within a few years might be prudent to consider a proportion of bonds as part of a more cautious portfolio. ...