30% Of Pension Funds Dump Riskier Investments

An estimated 30% of pensions funds have reduced their exposure to the likes of hedge funds and commodities in favor of the safety of bonds, according to the National Association of Pensions Funds. "There are a variety of factors at work here," says NAPF Chief Executive Christine Farnish, "including greater longevity, lower interest rates, new accounting standards and a tighter regulatory climate." These factors, she suggests, are leading to pensions funds to find ways "to match their liabilities more effectively," namely with safer investments.