|
Allocation of funds in various European countries |
||||
|
Country |
Equities (%) |
Bonds (%) |
Other (%)* |
|
|
France |
28 |
60 |
12 |
|
|
Germany |
31 |
56 |
13 |
|
|
Ireland |
60 |
33 |
7 |
|
|
Netherlands |
33 |
63 |
4 |
|
|
Spain |
40 |
38 |
22 |
|
|
Switzerland |
22 |
52 |
15 |
|
|
United Kingdom |
62 |
35 |
3 |
|
*Other assets include alternative investments such as property, hedge funds, private equity and cash.
European pension funds are managing the risk in their portfolios by diversifying their investments and placing more money in alternative assets, according to a new survey by Mercer Investment Consulting (Mercer IC). The survey of over 570 European pension funds with €364bn assets under management also found that, as well as reducing risk, pension funds are putting greater emphasis on active manager strategies (‘alpha’ strategies) to enhance returns.
Results showed that the UK and Ireland have the highest exposure to equities in Europe, at 62% and 60% respectively. UK pension funds have reduced their equity exposure from 68% three years ago, at a rate of two percentage points a year. At the other end of the spectrum, French pension funds invest just 28% in equities on average while Germany, the Netherlands and Switzerland invest 31%, 33% and 33% respectively. Funds in these countries have correspondingly higher allocations to bond markets.
European funds managing their risk
Report