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 15th 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.
2017 Findings at a Glance
- 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