Bank of England warns 'reputational herding' could lead to asset price volatility

Stephanie Baxter
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UK pension funds' tendency to herd in the same asset classes could lead to volatility in asset price or economic cycles which could be detrimental for the whole economy, according to a research paper from the Bank of England.

The discussion paper, Procyclicality and structural trends in investment allocation by insurance companies and pension funds, is the fruition of collaborative work by industry participants, academi...

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