A £1.4bn (€2.3bn) pension scheme sponsored by Coats Viyella, the UK-based textile giant, has raised its exposure to fixed income from 30% to 50%. The move came a week after the Boots pension fund said that it has switched 100% of its portfolio into bonds to fully protect its liabilities.

Finance directors across the UK believe that new pension fund accounting standard FRS17 will force yet more schemes to slash their equity weightings.