U.K. pension funds allocated an average 29% of assets to equities as of March 31, with U.K.-listed equities declining in portfolios.
The London-based Pension Protection Fund's 12th edition of its "Purple Book" report said allocations to equities fell from 30.3% in its 2016 analysis.
Bond allocations increased to 55.7%, from 51.3% a year earlier. The report said these changes continued long-term trends.
Within the equities allocation, the U.K.-listed proportion fell to 20.5% as of March 31, from 22.4% a year earlier. Overseas-listed equities allocations increased to 69% from 68.6%, and the private equity allocation also increased, to 10.5% from 9%.
Allocations to asset classes outside of bonds and equities fell to 15.3% as of March 31, from 18.4% a year earlier.
The best-funded pension plans tend to have the greatest proportion of their assets allocated to bonds, with a smaller proportion in equities, the report said.
The report also said the proportion of pension funds frozen rose to 39% in 2017, up from 35% in 2016. The PPF said in a statement accompanying the report that "this is a more notable rise when compared to the steady trend seen over the preceding years."
Funding levels improved over the year, to an average 90.5% as of March 31, compared with 85.8% as of March 31, 2016. The total deficit fell 27% to £161.8 billion ($201.5 billion).
Much of the analysis of the report is based on information from the 5,588 pension funds protected by the PPF, which is the lifeboat fund for the defined benefit funds of insolvent U.K. companies. The majority of data is based on information that eligible DB funds are obliged to provide to The Pensions Regulator.