ATP: Diversified asset strategy only solution to pension fund’s inflation uncertainty

Uncertainty over the future outlook of inflation means that pension schemes must diversify their asset allocation in order to mitigate against the risks posed to funding levels, according to Lars Rohde, chief executive at Denmark’s £76 billion ATP pension fund.

Speaking in Frankfurt, at Risk magazine’s Europe conference, Rohde warned that inflation “was poisonous to pensions”, but as governments move from a policy of fiscal stimulus over the last 18 months to a period of retrenchment in state