Large U.K. pension funds' 2005 allocation to Asian equities, including Japan, jumped to 13.2% from 7.1% in 2004, according to the results of Baring Asset Management's annual survey of the country's largest plans in terms of assets.
Compared with other regions, Asia offers "more attractive currencies, growth, valuations and increasing dividends," Barings CIO Michael Hughes said in a news release. "We still believe that many (U.K. pension) schemes have too little invested in Asian equities."
Only 8% of the 24 respondents plan to increase exposure in emerging markets in Asia - although allocations will remain about the same even if the global economy slows, indicating investors are seeing less correlation between the U.S. and Asian equity markets, according to the release.
The survey was conducted in August. Mr. Hughes could not be reached by press time for additional comment.
