Asset Allocation Considerations for Pension Insurance Funds: Theoretical Analysis and Empirical Evidence

摘要

An ageing population, low birth rates, a decreasing workforce and fundamental changes in the workplace are threatening the financing of the pay-as-you-go (PAYG) system in developed countries. To ease this challenge, leading European pension systems have emphasized capital-funded, private pension schemes as a substitute for the statutory pension system. In particular, the UK and the Netherlands have adopted social responsible investment (SRI) strategies as well as alternative investments in the asset allocation of the pension funds. However, Pension Insurance Funds (Pensionskassen) in Germany hesitate to do so. Their asset allocation is highly regulated and very risk-conservative. This book provides detailed theoretical analysis and empirical evidence that German Pension Insurance Funds should consider SRIs as well as alternative investments as part of their strategic asset allocation.