The theory that pension funds will transfer investments out of equities into sterling long-dated bonds to reduce exposure to the stock market is fundamentally flawed. That is the finding of a recent study by KPMG.
The study estimates that UK pension funds have around £750 billion in assets associated with defined benefit schemes. Currently many of these schemes are in deficit, but when they attain a fully funded position it is expected that these funds will seek to cut their equity exposure to re
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