UK pension funds are being urged to increase investment in overseas equities.
Actuaries say that diversification into overseas equities is not being implemented quickly enough even though the move away from the traditional bias of investing in UK equities has gathered momentum in the last few years.
Actuaries said diversifying pension funds investment portfolio also corresponds with Myners recommendation.
They said that low levels of investment in markets which have been performing well, such as the US, are indicative of the growth opportunities that pension funds have been missing.
Delegates at the profession’s pension convention in Brighton heard how changes in the structure of UK equities – with a greater influence from overseas investors and earnings and a less risk-adverse approach to investment – are facilitating the move towards overseas investment.
President of the Faculty of Actuaries David Kingston said: “Diversification is entirely consistent with the investment principles outlined in the Myners report.
“Its focus on asset allocation prompts a greater depth of thought about this strategic level of investment. It encourages diversity by advocating that the full range of investment opportunities should be considered.”He added: “Actuaries are in a strong position to act as a catalyst for change in the investment approach which should benefit all members of pension schemes.”
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