Fund managers in pensions shake-up

PENSION fund managers have begun reacting to the downturn in global stock markets by diversifying their investment choices and lowering their exposure to equity markets.

A new survey, conducted by business consultancy Mercer Ireland, has found that 47% of Irish-based pension schemes have indicated a further decrease in their levels of equity exposure, with many moving from equities into bond investments and non-traditional asset classes.

In all, the European-wide survey — of more than 1,000 pension funds across the continent — found that 60% of respondents expect to introduce new investment opportunities into their portfolios in order to help mange future investment risk.