UK - Pooled balanced fund managers have been selling bonds to bolster equity holdings in their portfolio, according to Russell/Mellon CAPS.
The performance measurement company said in order to maintain a specified equity weighting in balanced portfolios, investment managers had to sell bonds with healthy performance levels to buy equities with plunging values.
Russell/Mellon CAPS research and development director Alan Wilcock said many pension funds set allocation limits with their balanced investment manager, which meant the fund manager had to rebalance the portfolio every few months.
The trend has meant the shift from equities to bonds has been much less marked than it could have been.
Overall equity weightings fell from 80.3% to 78.5% while fixed income weightings rose from 13.6% to 15.3%.
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