James Mackintosh traces the “cult of the equity” amongst UK pension funds back to George Ross-Goobey, who switched the Imperial Tobacco Pension Fund into equities in the 1950s (“Parallels with post-war era”, FTfm June 18). After long term equity underperformance, are we now seeing the death of this cult. (…)

But the real reason for the death of the cult of the equity is more fundamental than just equity underperformance. Since Mr Ross-Goobey’s day, the underlying nature of a UK defined benefit pension has changed, without the change being properly recognised. What may have been the right asset allocation a generation ago no longer fits the bill.

 Financial Times