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U.S. public pension funds may turn to more 'aggressive' investment, report says
reuteurs ^ | 2/2/2022 | reuteurs

Posted on 02/02/2022 11:05:39 AM PST by RomanSoldier19

NEW YORK, Jan 31 (Reuters) - U.S. public pension funds will likely have to switch to more aggressive investment strategies in the coming years to fill funding gaps despite assets held by sovereign investors having grown to record levels amid the 2021 equity market boom, a new report said.

On average, the difference between assets and liabilities at U.S. public pension funds, known as the "funded ratio," remains "unsatisfactory" at less than 75%, sovereign investor specialist Global SWF said in a report.

To boost returns, many will likely have to focus on alternative assets, including private equity and private credit, Diego Lopez at Global SWF told Reuters.

"Certain pockets of real assets including logistics properties and infrastructure may also benefit from increased interest, and hedge funds will continue to be an important part of US [public pension funds'] portfolios."

(Excerpt) Read more at reuters.com ...


TOPICS: News/Current Events
KEYWORDS: collapse; debt; pension; pensionfunds; pensions; theend

1 posted on 02/02/2022 11:05:39 AM PST by RomanSoldier19
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To: RomanSoldier19
What could go wrong?

sounds like preparation for the final steal of middle class wealth by the elites.

2 posted on 02/02/2022 11:09:58 AM PST by D Rider ( Q)
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To: RomanSoldier19

I didn’t read the whole thing…but that headline does not sound like a good idea. At all. Going more risky in this market is pretty much insane.


3 posted on 02/02/2022 11:10:19 AM PST by Vermont Lt
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To: RomanSoldier19
Will this mean the pension plans' PBGC insurance premiums will go up? Think of it as the FDIC for pensions instead of banks.

I believe the rules to be covered include a requirement like only such-and-such percentage invested in equities or the premiums go up.

4 posted on 02/02/2022 11:10:32 AM PST by Tell It Right (1st Thessalonians 5:21 -- Put everything to the test, hold fast to that which is true.)
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To: RomanSoldier19

Crypto. The other asset classes are massively inflated. That asset class is still tiny. Investors hungry for returns are increasingly going to demand exposure to the crypto market.


5 posted on 02/02/2022 11:14:39 AM PST by FLT-bird
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To: D Rider

6 posted on 02/02/2022 11:16:17 AM PST by RomanSoldier19 (Res ad Triarios venit; )
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To: FLT-bird

A 10 P/E and 2.8% dividend is not hyper-inflated.


7 posted on 02/02/2022 11:32:41 AM PST by TexasGator (UF)
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To: RomanSoldier19

Face, the government screws up everything they touch. Government should not be the place to get rich. Government should not be the place to obtain retirement benefits. No one should be employed by government more than 12 years; local, state and federal governments combined.


8 posted on 02/02/2022 11:36:57 AM PST by ConservativeInPA (Two weeks to slow the spread of communism.)
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To: TexasGator

iTS A SHAME WHEN NO NOTHINGS ARE ALLOWED TO WRITE LIES ABOUT PUBLIC PENSION PLANS. To begin with no plan is designed to completely pay out all monies earned people have a habit of dyeing before full pay outs are required. There are way over 3,077 counties in the USA an every one of them have 10-20 cites within them that each have a Fire Dept Pension Plan, A Police pension Plan, a Civil Service Pension Plan and a management pension plan.An almost everyone has a pension board with a pension check payout company and management company as well as every plan has its own lawyers. Please understand what the hell you are writing about....


9 posted on 02/02/2022 12:04:20 PM PST by electricjack (Hello I am from the govt an here to help you Ugh worst thing I ever heard..)
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To: ConservativeInPA

“No one should be employed by government more than 12 years;”

Ike disagrees.


10 posted on 02/02/2022 12:05:05 PM PST by TexasGator (UF)
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To: RomanSoldier19

Betting it all on a new crypto-currency, developed by renown financial genius Hunter Biden, with the support of Chinese partners.


11 posted on 02/02/2022 12:08:51 PM PST by BeauBo
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To: electricjack

“There are way over 3,077 counties in the USA an every one of them have 10-20 cites within them that each have a Fire Dept Pension Plan, A Police pension Plan, a Civil Service Pension Plan and a management pension plan.”

Nope. As an example, my brother’s county plan is handed off to the Florida Retirement system. All the county does is deduct from his paycheck and pay a supplement to the Florida system.


12 posted on 02/02/2022 12:10:07 PM PST by TexasGator (UF)
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To: RomanSoldier19

Defined benefit public sector pensions should be cashed out and reinvested as 401(k) or 457 type retirement plans where you get out only what you pay in to them.

That or we can just wait for the pension system to collapse.

And those really are the only two options here.


13 posted on 02/02/2022 12:36:24 PM PST by MercyFlush (DANGER: You are being conditioned to view your freedom as selfish)
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To: ConservativeInPA

“No one should be employed by government more than 12 years; local, state and federal governments combined.”

I agree. We need term limits to all government employment in order to prevent a Deep State from entrenching itself as we have seen these past so many decades.


14 posted on 02/02/2022 12:37:59 PM PST by MercyFlush (DANGER: You are being conditioned to view your freedom as selfish)
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To: TexasGator

Sorry but you missed my point each and every plan has its own policies there is no central plan for the entire county or state. People in Florida who vote to send their pensions to FHRS the state system is dead wrong. That gives a politician the control of the plan’s monies. Look up Alex sink bought a string of rent-controlled buildings in NYC and wasted all the profits of the funds. She came in with Charlie Crist another Lindsey Graham who can’t quite figure out what party to follow. Lifetime useless politicians. Some boards are smarter than others me I am glad that in my city we have single pension plans controlled by a individual board. Unlike our neighbor who have the Police and Fire Depts on the same Board....Keep in mind Public Pension Plans are exempt from the PBGC rules. Because if they go broke the cities have to make up the $$$ differences not the PBGC who have zero to do with Public Pensions....


15 posted on 02/02/2022 1:39:02 PM PST by electricjack (Hello I am from the govt an here to help you Ugh worst thing I ever heard..)
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To: TexasGator

Ike was wrong.


16 posted on 02/02/2022 2:53:38 PM PST by ConservativeInPA (Two weeks to slow the spread of communism.)
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To: ConservativeInPA

“Ike was wrong.”

Nixon says Ike was right.


17 posted on 02/02/2022 4:15:34 PM PST by TexasGator (UF)
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