The "great retreat" of Europe's pension funds from equities continued last year, despite recovering markets, as newly-opportunistic investors poured their money into corporate credit and emerging-market debt.

The investment consultancy Mercer - reckoned to have the widest coverage of its peers across the continent - surveyed about 1,000 of its clients during 2009, with about €500bn ($670bn) under management. Nick Sykes, a worldwide partner at the firm, said: "Pension funds tend to be regarded as slow-moving investors. 2009 was different."