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Pension fund asset allocation - bonds vs equities

SallyG
SallyG Posts: 850 Forumite
Just looking at BHS pension asset allocations:
https://www.bhspensions.com/wp-content/uploads/2015/09/Bhs_-Audited-Accounts-31-03-2015.pdf
Para 10 ....From March 2015 81% bonds 10% equities
and PPF
http://www.pensionprotectionfund.org.uk/investment/Pages/Investment.aspx
PPF : 58% in cash and bonds

Is this a good risk-averse pattern for an individual pension fund in drawdown?
Are bonds safe/productive now?

Comments

  • dunstonh
    dunstonh Posts: 121,241 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Is this a good risk-averse pattern for an individual pension fund in drawdown?

    Risk averse and drawdown are not words that normally go together.

    Being heavy in cash and bonds reduces the volatility and prevents the liability from increasing much more. It will be highly unlikely to reduce any shortfall but that isnt the point of a fund in trouble.
    Are bonds safe/productive now?

    They have been very productive upto about a year ago. Future is always unknown but a drop is expected but its been expected for the last 5 years.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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