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Pensions seen yanking up to $1T from stocks to trim risk

If pensions plans are caught wrong-footed -- like they were in busts earlier this century -- it can quickly spell higher costs for employers.

By Sonali Basak, Katherine Chiglinsky | Updated on August 31, 2017
If pensions plans are caught wrong-footed, it can quickly spell higher costs for employers. (Photo: Getty)

(Bloomberg) – Pension funds are poised to shift as much as $1 trillion from stocks to bonds in coming years to lock in gains and limit the potential for big losses, according to Wells Fargo & Co.

“Definitely there’s a lot of money that will want to move,” said Andy Hunt, head of global credit and liability-driven investing at Wells Fargo Asset Management, predicting it will happen within roughly five years. “Best case, it’ll be between a half a trillion and a trillion.”

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