Best Pensions Paper 2020 (UK and Europe)
CFA Institute wins Best Pensions Paper 2020 (UK and Europe)
Defined benefit pension schemes frequently allocate a portion of their assets to private market alternative asset classes. Unfortunately, these same options do not presently exist for defined contribution investors, mostly due to minimum contribution requirements. It is also the case that there are factors at work preventing target date funds from allocating to private markets. CFA Institute's winning paper explores these issues in detail, with insight into regulatory constraints and other issues that are particular to the European market.
WINNING PAPER: CFA INSTITUTE
Investing Pension Contributions in Private Markets (CFA Institute, 2020)
With fewer companies opting to go public in recent years, should defined contribution pension schemes be allowed to invest in private markets? The decision to do so is complicated by liquidity and cost constraints imposed by trustees and regulators, but the industry may be coming around to the idea. CFA Institute highlights these and other unique issues within the European pensions landscape.
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ABOUT THE AUTHOR
Andrew Perrins is a former Actuary and Asset Allocator. After qualifying as an Actuary, he worked for 15 years in investment management, serving as Director of Asset Allocation for Abbey Life and for Chase Manhattan, before setting out on a more entrepreneurial path.
To contact him, email [email protected]