Pension investor portfolios skewed towards cash

In today's FT Sharlene Goff writes that "Providers of self-invested personal pensions (Sipps) have reported a swing away from equity markets over the past year, with many investors amassing a third or more of their total fund value in cash. Some advisers warn that these investors have taken too long to move back into equities as markets have rebounded."

“There has been a rapid turnaround in the markets in the first few months of this year and investors are thinking should they now go back in,” says Malcolm Cuthbert, partner at Killik & Co, the adviser.

The report says that they see clients holding too much cash in their pensions. However, Investec Private Bank research found that a quarter of pension administrators have seen clients increase the cash in their Sipps by up to 25 per cent in the past year.