Diversification increases for pension funds: survey
Greater asset diversification has been the key tactic adopted by pension professionals to navigate market volatility, a survey by Barings has claimed.
According to the poll the amount of people using the tactic had increased from 47.6 per cent to 63.8 per cent in the past six months.
Andrew Benton, head of UK and international institutional sales for Barings, said reviewing the investment portfolio more regularly was another tactic employed by respondents.
Asked where they saw the biggest challenges to investment growth in the next six months, 87.5 per cent cited European debt concerns, while 47.9 per cent highlighted tensions in the Middle East, and 41.7 per cent said they were concerned about a second banking crisis.
Emerging Asia was the most popular region, although support has dropped from 62 per cent to 54 per cent.
Mr Benton said: “This research shows that UK pension funds continue to be concerned with the need to manage volatility and diversify assets in order to protect against significant losses. We continue to see great demand for our suite of multi-asset products.”
Iain Atmore, financial consultant for Glamorganshire-based Lifestyle Financial Advice, said: “I tend to adopt more of the diversification approach. Regular reviews are good but you do not want to micro-manage.
“Pensions are a long-term investment. You have to roll with the punches. I am a supporter of managed funds. This way the fund manager does his job and I just keep an eye on the performance.
“I am not doing all the day-to-day things a provider or fund manager does, but as an adviser I am the glue that holds it all together.”