After a decade or more of dealing with the challenges of a lower-for-longer interest rate environment, the return of inflation and escalation of geopolitical tensions have created a new set of imperatives for global public pension funds. Alongside this, they continue to wrestle with familiar pressures and are increasingly expected to be at the forefront of asset owners’ responses to climate change and funding the green transition. Against this backdrop, OMFIF’s Global Public Pensions 2022 report seeks to build on the success of the 2020 and 2021 editions, track changes in asset and currency allocation and identify key sources of uncertainty and volatility for the long-term asset owner community.
This launch event, held in London, presents the key findings of the report. It will discuss the results of a detailed survey of asset owners’ allocation plans and investment strategies, together with insights on important areas such as ESG commitments, operating models, the use of external managers and investing in exchange-traded funds and Chinese assets.
The report highlights best practice in investment and asset management for public pension funds, the investment approaches of sovereign funds, as well as providing a unique databank on the best performing funds globally.
The launch event sheds light on the following issues:
- With real interest rates substantially negative, how do public pension funds continue to generate positive returns, or does volatility require a flight to safety?
- Taking stock of macroeconomic trends, which asset classes, currencies and regions are likely to gain favour over the next 12-24 months?
- How much are public pension funds investing in alternatives such as commodities, real estate, infrastructure, asset-backed securities and digital assets, and what will be the appetite for these asset classes over the short term?
- How are pension funds responding to the transition to a net zero economy and how much investment is there for labelled bonds, sustainable funds and other ESG asset classes in the short and medium term?
- How are pension funds adapting to the new economic paradigm? What operational changes are required to take advantage of new investment opportunities, and what are the key barriers?
- What macroeconomic factors are affecting sovereign funds’ investment practices?
- How are sovereign funds responding to the digital revolution and approaching issues such as asset class diversification, sustainability and integration?
- What changes are public pension funds making regarding infrastructural resilience, storage, access and management of data, which have all increased in scope and complexity?
17:00 – 17:30 Registration
17:30 – 17:35 Welcome and opening remarks
17:35 – 17:50 Presentation of key findings
17:50 – 19:00 Panel discussion and Q&A
19:00 – 20:00 Drinks Reception
This event is part of the OMFIF Institute for Economic and Monetary Policy, OMFIF’s core stream of activities covering economic and monetary policy and the political economy. OMFIF is an independent think tank for central banking, economic policy and public investment, providing a neutral platform for best practice in worldwide public-private sector exchanges worldwide. For membership enquiries please contact Jamie.firstname.lastname@example.org, or for further information please see the OMFIF website.