Serious policy barriers limit long-term investment

The OECD annual survey of large pension funds and public pension reserve funds, reveals the “existence of serious barriers that need to be urgently addressed at policy level” to encourage long-term investment.

The survey, which looks at 86 institutional investors from more than 35 countries accounting for $9.7 trillion in assets, as part of a research collective into long-term investing .

As part of the OECD report on “Government and market based instruments and incentives for stimulating the financing of long-term investment”, requested by the G20 finance ministers and central bank governors, analysis is also underway on the wide range of options available to institutional investors for accessing the infrastructure asset class and how the historic models of infrastructure funds need to be adapted to accommodate the interests of investors more favourably.

 

To access the report click here

 

Sponsored Content

 

Leave a Comment

GIC, Temasek eye trillions of growth in climate adaptation market

GIC, Temasek eye trillions of growth in climate adaptation market

Singapore’s two largest asset owners, GIC and Temasek, see attractive opportunities in climate adaptation solutions – a relatively underfunded area compared to decarbonisation. The former has already made selective adaptation investments and said the opportunity set across public and private debt and equity could increase to $9 trillion by 2050.

Sort content by

Public pension governance and asset allocation

This paper from Matt Dobra and Bruce Lubich, of the Methodist University in North Carolina and the University of Maryland University College, respectively, analyses the relationship between governance, asset allocation, and risk among state and local government-operated pension systems in the United States of America. It is argued that governance influences investment decisions and risk profiles of public

A Framework for Examining Asset Allocation Alpha

Recognising that different asset allocation portfolios are suitable for investors with different needs, Jason Hsu and Omid Shakernia think it is probably too ambitious to establish a unifying structure for determining benchmark asset allocation portfolios. Instead, they propose a framework for thinking about asset allocation alpha, assuming that investors have suitably determined their asset allocation policy portfolio. And the framework is:

A healthier way to de-risk

Defined-benefit funds all over the world are focused on de-risking but the amount of innovation and players to meet this demand is wanting. Until now. A new report by the Pensions Institute at the Cass Business School examines the emergence of medically enhanced, underwritten or enhanced, bulk buy-ins, in which trustees buy a bulk annuity

Raising ESG ratings with improved returns

While environmental, social and governance factors may be all the rage in investment strategies, the right tools to measure results of their implementation would make tangible what skeptics might think are the emperor’s new clothes. Cue researchers Zoltán Nagy, Doug Cogan and Dan Sinnreich from MSCI with their December 2012 paper, Optimizing ESG Risk Factors

GTAA and institutional investment management

The $70 billion AIMCo uses global tactical asset allocation to help add return in excess of passive portfolios. This research piece details how it has used GTAA over the past few years, advising other funds that executing a successful GTAA requires developing world-class talent, systems, process and governance.   To access the paper click below

How Norway’s SWF deals with FX tail risk

From a risk management perspective, tail risks and return distribution asymmetries of investments are important to analyse. Norges Bank Investment Management (NBIM) in this note describes a modelling approach that addresses some of the weaknesses of standard risk models. It uses the model internally as a complement to standard models to evaluate tail risk in foreign-exchange

Previous