The flow away from equities - pensions leave stocks

UK pension survey by Mercer states that equity exposure ha declined by 7 percent in one year to 43% of the portfolio, the lowest level since 1974. A similar UBS survey survey shows the same result. That low level was the period of great abandonment of equities. Over 38 percent of managers in the UK expect to lower their equity exposure while only about 1.4 plan to increase their exposure. 24% plan to to decrease their overseas exposure.

A GSAM survey of CIO's in the insurance industry states that there will be more focus on higher yielding credit and a reduction in cash and European financial credits. There is a reach for yield.

A Bank of America survey showed on 14 % of respondents were over-weighted in equities. The majority have stayed away from equities and focused on fixed income yield.

Pensions are looking for wider diversification and more exotic asset classes and have lost confidence in the normal equity bond balance.