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

Stephanie Baxter
clock

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...

To continue reading this article...

Join Professional Pensions

Become a Professional Pensions Lite Member today

  • Three complimentary articles per month covering the latest real-time news, analysis and opinion from the industry
  • Receive important and breaking news stories via our two daily news alerts
  • Hear from industry experts and other forward-thinking leaders

Join now

 

Already a Professional Pensions
member?

Login

More on Law and Regulation

Pensions minister rules out retrospective change after HoC debate on clawback

Pensions minister rules out retrospective change after HoC debate on clawback

MPs say pension integration ‘is a relic from the past and needs to be abolished’

Jonathan Stapleton
clock 24 April 2025 • 5 min read
PLSA: The key pension priorities for the rest of 2025

PLSA: The key pension priorities for the rest of 2025

Zoe Alexander say this year will set in train significant change in the market structure

Zoe Alexander
clock 23 April 2025 • 4 min read
SPP: Refinement needed on FCA plans for targeted support

SPP: Refinement needed on FCA plans for targeted support

Amanda Cooke says greater clarity is needed on how trustees can help members

Dr Amanda Cooke
clock 15 April 2025 • 3 min read
Trustpilot