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Are pension funds really long-term investors?

Pension funds used to be considered long-term investors, but the reactionary behaviour of a recent prudence* of pension funds globally has changed my view of their time-horizons and subsequent role in capital markets. *Prudence is the newly-crowned collective noun for pension funds as per the competition in our newsroom. Have your say in our poll.
Research

A fragile Eurozone in search of a better governance

This paper looks at the fragility of the governance in the Eurozone, and concludes that some of the features of the new financial assistance are likely to increase this fragility, and is likely to “rip” member-countries of their ability to use the automatic stabilisers during a recession.
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Germans ‘deeply unhappy’ warns academic

The asset allocation of corporate pension plans should be driven by corporate finance not asset management according to Bernd Scherer, affiliate professor of finance at EDHEC Business School, and instructor of an upcoming seminar on portfolio construction and risk budgeting in Singapore.
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Human gorillas chest-thump in US testosterone territory

There’s been a little bit of chest beating of the gorilla type in the US, on both the political and finance sides of the fence. I can’t help thinking the testosterone levels are getting a little out of control and some of the behaviour has been more about protecting territory rather than acting in the best interests of the electorate, clients, beneficiaries, or neighbours.
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