(February 25, 2010) – Many pension funds plan to raise their holding in listed stocks in 2010, according to a study.
The survey, which ended in January, found that by the end of the year, respondents expect to increase their equity holdings, with strong returns in the last quarter of 2009 expected to continue. Respondents predicted they will see average growth of 5.1% across all pension assets in 2010, IPE reported.
While bonds and equities are expected to generate a growth of 4.4% and 4.8% respectively, real estate has lost popularity, with respondents saying they would resist investing in property. Additionally, about 55% of respondents said longer life expectancy is one of the main threats to pension funds, along with the increasing relevance of liability-driven investment.
The Global Pension Survey (GPS) of 78 European pension funds in 16 countries was conduced by Tilburg University in the Netherlands with Investment & Pensions Europe (IPE) magazine.
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