BRITAIN'S PENSION funds transferred £20bn from equities into bonds between 2002 and 2004 as trustees became increasingly concerned about the volatility of the stock market and the effects of the ageing population, a study has found, reports the Times .
As a result, funds in Britain appear to be more risk-averse than those in the United States, where pension trustees increased their investment in shares over the same period, according to the study by Aon Consulting, says the Times. Nevertheless, companies supporting British pension funds are still more vulnerable to falls in the stock market because of the size of the fund compared with the company’s market capitalisation; a ratio which tends to be higher on average in Britain than America, Aon said. THE FINANCIAL Times says Britain faces a growing challenge from the impact of increa...
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