UK pensions still exposed to volatile equities

Many UK pension schemes still face significant pension deficit volatility as a result of asset and liability mismatches, according to a report by Mercer Human Resource Consulting.

Mercer's FTSE 350 Pension Scheme Survey, published on June 30, claims that for the most exposed 5% of the FTSE 350, the median impact of a one-in-20-year adverse event - for example, a major collapse in equity markets combined with low interest rates - could reduce their market capitalisation by at least 12%.

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