UK pension funds’ exposure to domestic equities fell to its lowest level on record last year as their allocation to bonds outstripped UK stocks for the first time, research from BNY Mellon Asset Servicing shows.

According to the custodian, UK pension schemes decreased their global equity holdings from 62.7% to 55.1% during last year, the eighth consecutive year of cuts. UK equities fell from 34.4% to 28.7%, while overseas equities dropped from 28.3% to 26.4%.