The UK's pension funds echo the British government position on Emu, according to a recent survey, with 90% believing that the UK should join but with 80% against joining in the first wave.

Ten per cent of funds surveyed believe that the UK should not join.

The survey, published by currency overlay manager Record Treasury Management, based in Winsdor in the UK, questioned the top 250 pension funds achieving a response rate of 12.5% which included 18 of the country's top 100 funds.

The survey was conducted in September this year, before the recent market turmoil.

Exactly half the pension funds surveyed believed that joining Emu would presage an increase in their holdings of European equities with 47% saying that holdings would remain the same and 3% believing that they would decrease. Forty-three per cent believed that European fixed income holdings would increase with 50% believing that holdings would remain the same and 7% believing that they would decrease.

With other international holdings expected to remain at current levels, the survey suggests that UK equity and fixed income holdings will decrease in the advent of the UK membership.

The survey also shows many pension funds reacting to the removal of the advanced corporation tax (ACT) credit by reducing their UK equity exposure with 48% saying they will reduce UK holdings, 42% saying that holdings will remain the same with the remaining 10% set to increase holdings.

Thirty-nine per cent of funds plan to increase international equity exposure, 39% to increase UK fixed income exposure and 23% plan to increase international fixed income exposure because of ACT.