Final Salary Pension Schemes Leave Equities
Published / Last Updated on 31/01/2008
Final salary pension schemes continued to leave equities last year according to a survey carried out by the National Association of Pension Funds (NAPF).
Final salary pension schemes continued to move away from equities as further diversification of assets took place. The survey revealed a 3 per cent rise in the use of fixed interest and alternatives and cash at 29 per cent and 16 per cent respectively.
Our view
Final salary pension scheme trustees have pressure on them to ensure a balance between risk and return. The survey shows that more are diversifying to reduce volatility. We suggest this will mean great contributions will be required by employers to continue funding final salary pension schemes.
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