Risk in transition

Asset allocation

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The adoption of mark-to-market valuation has led many pension fund trustees and plan sponsors to a painful conclusion: their schemes are chronically under-funded. Research by UK-based actuarial consultant Lane, Clark and Peacock, for example, indicates that, on average, the FTSE 100-listed companies’ pension schemes held assets for only £80 of every £100 of mark-to-market liabilities.

While it appears that UK-based pension schemes haven’t been as proactive in pursuing major asset reallocat