UK - The Diageo Pension Scheme has made its first move into bonds in a bid to reduce fund volatility.
The 4% allocated to bonds comes at the expense of its equity holdings which stood at 82% at its last actuarial valuation.
The fund also has a 15% allocation to property. Diageo pensions director Michael Glasgow said the fund and sponsoring employer still backed the belief that equities would outperform bonds and make the running of the scheme cheaper over time.
The move to reduce volatility follows the funds assets slumping to just 70% of its liabilities as of April 2003.
Since then Diageoís allocation to equities has reduced much of this deficit due to a revival in the stock market.
Diageo’s final salary scheme is open to new members.
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