On Nov. 24, 2008, Global Pensions reports on NIRS new report, which finds that that US public pension plans exhibit prudent investment behaviour in bear and bull markets. These institutional investors don’t get caught up in a “herd mentality” — even during turbulent times.
A report by NIRS revealed that despite market uncertainty, institutional investors had largely performed as they should, and found public pension schemes were prudent in their asset allocation and “buckled down”.
It showed public pension plans followed prudent investment behaviour by regularly rebalancing their investment mix, learning from industry leaders and avoiding moral hazard and employer conflicts of interests.
NIRS executive director Beth Almeida said: “As the global financial crisis brings a renewed focus on retirement security, the findings provide confidence in the management of retirement assets held by state and local pension funds.“This investment behaviour positions the funds to continue providing a steady, predictable retirement income to workers in the most efficient manner possible during bull and bear markets alike.”
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