PENSION FUND MANAGEMENT AND INTERNATIONAL INVESTMENT – A GLOBAL PERSPECTIVE

Some larger pension funds are already making allocations to green investments via direct infrastructure investments and through private equity. Yet such direct financing mechanisms are only really an option for large pension funds with considerable in-house resources. Many smaller pension funds are likely to increase their asset allocation to such projects via green bonds, structured instruments, or green equity funds. As discussed earlier, in most OECD pension funds, bonds remain by far the dominant asset class in portfolio allocations, accounting for 50% of total assets under management on average. It is through these green bonds that significant pension...