Pension funds in the UK appear to be locked in a glacial shift towards ever-increasing allocations to fixed income, but as equities are delivering some of the best performances seen for years, now may be the time to reassess growth asset strategies.

In November last year, UK pension funds for the first time held more bonds than equities. The Pensions Regulator, which collates data on 6,316 defined-benefit schemes representing 99% of estimated total liabilities and 11.7 million members, said UK funds hold 43.2% in gilts and fixed interest compared with 38.5% in equities.