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Pensions May Yank Up to $1 Trillion From Stocks to Trim Risk

  • As much as $1 trillion could shift as plans de-risk, bank says
  • Soaring S&P 500 hasn’t offset pressure from low interest rates
Pedestrians pass in front of the New York Stock Exchange.

Pedestrians pass in front of the New York Stock Exchange.

Photographer: Michael Nagle/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.”