Pension schemes are building up their cash holdings amid fears that equities and bonds have become too expensive, according to consultants polled by Financial News.

Many are holding about 3% in cash after having held very little historically. The shift looks small, but it could total as much as £45 billion if applied evenly across UK pension assets of around £1.5 trillion. Russell Investments is the most cautious consultant. It recommends cash allocations of between 5% and 6%.