Mercer | European Asset Allocation Report 2017

55% of UK DB schemes are now cash flow negative

• Overwhelming majority of UK DB schemes will be cashflow negative by 2027
  
  
• Equity allocations in UK schemes halves to 29% from 58% in 2008 as de-risking continues
  
  
• More interest in higher yielding, illiquid assets as investors diversify equity risk and build cashflow-driven approaches

It is the 15^th year of the European Asset Allocation Survey, in which we provide you with a comprehensive overview of asset allocation trends across the European pension industry, covering 1,241 European institutional portfolios across 13 countries, with total assets of around €1.1 trillion.

The survey provides a detailed insight into plan portfolios, how they have evolved and how stakeholders expect them to change in future; and we encourage to read our insight into the European pension landscape.

Phil Edwards, Global Director of Strategic Research, gives a short summary of the findings from this year’s survey.

Download the full report

• DE-RISKING REMAINS A DOMINANT FORCE
  
  
• MORE THAN 50% OF UK DB PLANS NOW CASHFLOW NEGATIVE
  
  
• LOW YIELDS ENCOURAGE A MOVE TOWARDS LESS LIQUID ASSETS
  
  
• RESURGENCE OF HEDGE FUNDS