14/1/2009
By Francesca Fabrizi
Concerns over funding, risk management and volatility still top the list of defined benefit pension plan woes, says a recent study by Pyramis Global Advisors.
Other key findings of the 2009 fourth quarter Pyramis Global Pension Pulse Poll, which surveyed more than 400 pension plans worldwide, were that institutional investors believe that actively managed equity strategies will deliver the alpha they are looking for in the foreseeable future; while many plans are looking to increase their global equity allocations, particularly (among the Dutch and Nordic investors) in the emerging market space.
There is also a strong interest - mainly in the US and Canada - in long-duration fixed and corporate credit strategies; while pension funds, particularly in Europe, are intending to diversify into alternatives such as hedge funds, infrastructure or private equity.
Young D. Chin, chief investment officer at Pyramis Global Advisors, commenting on the findings, said: "Pensions face significant challenges as to how they move forward after the sustained volatility global equity markets have experienced, and we found a diverse set of outlooks and strategic approaches across the regions as pension plans navigate today's markets and set a course for the future."
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