SunGard: Pension funds at risk – The new approach For Long-term investment

The pension fund industry is at an inflection point in its view of risk. The fear of under-funding in the face of falling returns and unfavorable demographics is leading to a greater investment in more exotic instruments such as derivatives and alternative assets. However, this is changing the risk profile to a point beyond what is normally captured through the core metrics and models employed by pension funds, creating a challenge to the traditional risk management approach.

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