The Japanese Government Pension Investment Fund, hardly hit by the Covid-19, has yielded -10.71% in the first quarter of 2020.
Tapping into its Future Generations fund is one of the options on the table for the oil-rich country.
Institutional investors' increased allocation of funds to their domestic market could lead to underperformance during periods of volatility.
The average financing rate of private-sector employer pension funds fell by 8% in the first quarter of 2020.
The European Insurance and Occupational Pensions Authority (EIOPA) pressed insurers to defer dividend distribution and share buyback programs, resulting in a share price drop.
Oil-driven sovereign wealth funds have sold between $100bn and $150bn in equities in recent weeks.
The $1.5trn Government Pension Investment Fund (GPIF) has adopted a new portfolio, increasing its allocation to foreign bonds and reducing domestic bonds.
Reversing past pension reforms would be costly and would put a disproportionate burden on current and future generations.
A recent case examined by the Court of Appeal of Arnhem-Leeuwarden in the Netherlands has determined whether a foreign firm employing Dutch lorry drivers shall pay contributions to the local industry pension scheme.
Government Pension Investment Funds, Japan’s largest pension fund, will team up with the German development bank KfW to increase investments in green bonds.