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

Are state public pensions sustainable?

Assuming future state contributions fund the full present value of new benefits, many US state systems will run out of money in 10-20 years. This paper argues the expected shortfalls raise the possibility that the federal government will be faced with a decision whether to bail out states driven to insolvency by their pension programs.mrec4inarticleinline

Dynamic hedging in incomplete markets: a simple solution

Despite much work on hedging in incomplete markets, the literature still lacks tractable dynamic hedges in plausible environments, in this article, Professor Suleyman Basak and Dr Georgy Chabakauri provide a simple solution to this problem.mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3

Eigenfactor adjusted covariance matrices

This paper investigates the underlying sources for the biases of optimised portfolios, and identifies special portfolios, termed eigenfactors, that exhibit large systematic biases in the risk forecasts. It shows that the covariance matrix can be adjusted to remove these biases, and that removing eigenfactor biases essentially removes the optimised portfolio biases as well. mrec4inarticleinline Sponsored

The new era of infrastructure investing

This collaborative research looks at the constraints preventing institutional investors from taking their theoretical place of prominence in the market for private infrastructure. It offers insight into how institutional investors can establish internal programs, and details about the challenges of direct investment programs. But, it also concludes that funds managers will still have a crucial

Strategic asset allocation for long-term investors

This Netspar research by Hoevenaars, Molenaar, Schotman and Steenkamp studies the effect of parameter uncertainty on the long-run risk of three alternative asset classes: equity, nominal bonds and short-term T-bills.mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3

Industry vs country factors in global equity markets

The relative strengths of industry versus country factors can be of major importance for global equity portfolio managers. If country effects dominate, then primary consideration can be given to the country allocation decision. On the other hand, if global economic integration is reducing the distinctions between countries, then an industry-first investment process may be more

Previous