Monday 21 October 2019

Irish pension money in equities reduced

Irish defined benefit pension schemes have continued to reduce their allocation to equities, which now stand at just 28pc of their investments, compared with 34pc in 2018. (Stock photo)
Irish defined benefit pension schemes have continued to reduce their allocation to equities, which now stand at just 28pc of their investments, compared with 34pc in 2018. (Stock photo)
Samantha McCaughren

Samantha McCaughren

Irish defined benefit pension schemes have continued to reduce their allocation to equities, which now stand at just 28pc of their investments, compared with 34pc in 2018.

According to Mercer's 2019 European Asset Allocation Survey, this trend is reflected by investors across Europe and the UK, with the average equity holding falling to 25pc this year, from 28pc in 2018.

Please log in or register with Independent.ie for free access to this article.

Log In

Olivier Santamaria, head of investment consulting for Mercer Ireland, said: "While 2019 has so far been marked by cautious optimism, investors need to remain vigilant in an ever-evolving macro-economic and political backdrop. In the past year, Irish pension funds have reduced their exposure to equities, diversifying into other asset classes, including property, infrastructure and hedge funds."

According to research from Mercer, sustainability is also gathering momentum among European institutional investors, with 55pc of schemes now considering environmental, sustainable and governance risks as part of their investment decision-making, up from 40pc in 2018.

More than half (56pc) cited regulatory pressures as the main reason for this increased focus on this area.

Some 876 institutional investor clients were surveyed in 12 countries.

Sunday Indo Business

Also in Business