Home / Insurance Tips / Market turmoil leads to less appetite for risk by pension funds, State Street global survey finds

Market turmoil leads to less appetite for risk by pension funds, State Street global survey finds

For those employees with a defined benefit type of pension, the ride ahead looks enjoyable; for those having a defined contribution plan the ride is going to be less enjoyable while those without a pension plan, start saving.

Those differences result from the kind of pension funds on offer by employers, and the difficult challenge for that investment managers to generate the benefits which have been promised.

“Pension funds are greatly focused on their investment mix and changing that mix to isolate (themselves) from some of the volatility we have observed in the global stock markets,” said Rob Baillie, head of State Street Canada, when referring to a key conclusion emerging from the annual survey of pension funds conducted by its Boston-based parent.

“The money is diversifying a few of the risk away and also to try to generate returns which are hopefully stronger and not correlated towards the global markets,” added Baillie, noting greater contact with alternative investments is a approach.

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