UK - Pension funds are continuing to move assets out of equities and into other investment classes, the National Association of Pension Funds says.
It said UK equity investment had fallen from 28.2% to 21.2% and said the percentage of assets invested in overseas equities fell from 31.5% in 2006 to 28.8% in 2008.
And it found that only 3pc of respondents said they had increased their investments in equities.
The survey found investments in fixed income had risen from 27.7% in 2006 to 31.2% this year; private equity allocations had increased from 1.7% to 2.5%; and hedge fund assets had increased from 1% to 1.9%.
NAPF policy adviser on investment and governance David McCourt said: "The pattern of UK pension fund investment continues towards greater diversification as a means of better risk management and reducing the impact of significant volatility in world equity markets.
"If volatile equity markets persist it would be likely that this trend will continue in 2009."
The survey also found 23% of schemes had implemented a liability-driven investment strategy - while a further 41% had considered implementing such strategy this year.
This week's edition of Professional Pensions is out now.
Industry Voice: Sponsored by Eaton Vance
BNY Mellon has launched a range of reporting tools to help institutional investor clients track and evaluate portfolio investments based on environmental, social and governance (ESG) issues.
PP speaks to BESTrustees director Heather McGuire about her views on the CMA's review into the investment consultant and fiduciary management markets.