July 2006
Issue Features
- Private Equity in the Public Eye
- The New Appeal of Emerging Markets
- The Search for Efficient Asset Class Exposure
- The Global Shuffle
Column: Voices
Departments
Department: Global Megatrends
Today, and over the foreseeable future, a series of events — call them global megatrends — will have a profound impact on the world economy. Each issue of Point of View will share insight into these trends and how the institutional investment community is preparing to address them.
The Aging of the Work Force in Industrialized Nations
Around the globe, aging populations in industrialized countries are impacting growth, living standards, public policy, public finances, financial markets and international capital flows. Declining ratios of workers to retirees have led to an underfunding of pensions across a range of developed countries. This underfunding has, in turn, led to increased legislation and regulatory changes. For plan sponsors faced with funding issues amid the development of a new paradigm, however, a wide range of potential solutions can be found.
Strategies for Matching Pension Liabilities
Pension plan sponsors facing the prospects of more retirees living longer in retirement are considering various new investment solutions:
- Hedge funds
- Liability-driven investments
- Absolute return strategies
- Private equity
- Long/short strategies
- Commodities
- Portable alpha
Source: Northern Trust
© 2013 Northern Trust Corporation
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This material is directed to eligible counterparties and professional clients only and should not be relied upon by retail investors. For Asia Pacific markets, it is directed to institutional investors, expert investors and professional investors only and should not be relied upon by retail investors. This information is provided for informational purposes only and does not constitute a recommendation for any investment strategy or product described herein. This information is not intended as investment advice and does not take into account an investor’s individual circumstances. Opinions expressed herein are subject to change at any time without notice. Information has been obtained from sources believed to be reliable, but its accuracy and interpretation are not guaranteed.
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