UK - Three out of five schemes expect to increase their property weightings over the next few years, research by PricewaterhouseCoopers shows.
The consultant’s report – Property in Pensions: The forgotten asset class – says that while property weightings have dropped from 20% in the 1970s and 80s to 4% in 1999, interest in the sector has increased due to the downturn in equity markets.
The survey found that 60% of respondents anticipated both a short-term and medium-term increase in their overall allocation to property.
It also found that of the schemes which had invested in the asset class, more than 90% did so on a direct basis, rather than through property funds.
Externally managed pooled vehicles (71%) and UK limited partnerships (62%) were the most popular method for those investing in indirect property vehicles.
In addition to the core commercial property sectors, 50% of schemes have invested in niche markets such as leisure, hotels and residential.
The firm also found that 45% of schemes had investments outside the UK, particularly in Europe but also the US and Asia.
A former energy and climate change secretary has said that by continuing to invest in fossil fuel firms, pension schemes are just making the climate change crisis even worse.
The Royal Mail Defined Benefit Cash Balance Scheme (DBCBS) has ended its first full-year with a £9m actuarial surplus, the company says.
The Salvus Master Trust has launched a mobile app for members after employers revealed they wanted their members to have more access to online tools.
A rise in UK inflation back above the Bank of England's 2% target rate will not change the thinking of its Monetary Policy Committee with regards to interest rates, experts have said.