Credit Suisse See Pension Funds Selling Equities, Buying Bonds To Rebalance

Credit Suisse note that "with the equity market performing well MtD, we
expect a rotation of outperforming equity assets into fixed income assets
by pension funds in order to return to target weighting. As market
stabilises, the overall size of pension fund rebalancing on July end project
to be smaller than previous months. With the S&P 500 up 3.9% so far this
month, we expect $0.8bn selling of U.S. equities from pension funds that

rebalance on a monthly basis. International equities have performed
better - MSCI EAFE is up 5.4% MtD and MSCI Emerging Markets is up
9.3% MtD. This results in total rebalancing estimates of $5.2bn to sell in
Developed Market equities and $6.4bn to sell in Emerging Market
equities. Within fixed income, current projections show close to $12bn of
buying as funds reallocate the equity gains from domestic and
international equities to increase fixed income exposure to the targeted

levels."