This session addresses how areas such as investment opportunities and threats, economic environment, political landscape, and corporate finance optimization, could impact DB plan sponsors» decision making during these challenging times
for pension investors.
Among the US delegation was
pension investor Employees Retirement System (ERS) of Texas, which has some $ 2.3 billion invested in real estate.
How that bet will end is anyone's guess, but
pension investors at least have a long time horizon, and can afford the illiquidity.
Financial economists such as World Pensions Council (WPC) researchers have argued that durably low interest rates in most G20 countries will have an adverse impact on the funding positions of pension funds as «without returns that outstrip inflation,
pension investors face the real value of their savings declining rather than ratcheting up over the next few years» [19]
The alternatives face the same risk factors as ordinary investments, and they are not underinvested
by pension investors.
This session addresses how areas such as investment opportunities and threats, economic environment, political landscape, and corporate finance optimization, could impact DB plan sponsors» decision making during these challenging times for
pension investors.