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OECD Pension Markets in Focus 2011
-1.6% annual return (real terms, net of fees) for OECD pension funds between 2008 & 2011 - Collective DB pension schemes are more cost effective than DC schemes, says OECD

04/08/2011

Pension fund assets climb back to pre-crisis levels but full recovery still uncertain, says OECD.

 

And indeed, a carefull read of the 2011 edition of OECD Pension Market in Focus shows that:

  • the crisis is still felt across the board: end-2010 OECD pension funds had recovered $3tr from $3.4tr loss in 2008
  • On average (unweighted) OECD pension funds have had a -1.6% annual return (real terms, net of fees) between 2008 & 2010, -1.7% in the US

The OECD publication also shows that:

  • Collective defined benefit DB pension schemes are more cost effective than defined contribution DC;
  • Pension funds "rebalancing strategy" has tempered upward & downward movements in equity market, which is good for financial stability;
  • Bonds – not equity – remain by far dominant asset class of OECD pension funds with 50% of total assets.

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