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European Pension Funds and Financial Markets Developments. John Feely. Pension Fund Assets €million. Pension Fund Assets per cap €. EU €6500. Pension Fund Assets % GDP. EU 30.13%. Breakdown of funds. Pension Funds % Stock market capitalisation. EU 26.25%. Impact on capital markets.
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European Pension Funds and Financial Markets Developments John Feely
Pension Fund Assets per cap € EU €6500
Pension Fund Assets % GDP EU 30.13%
Impact on capital markets • Fundamental Issues • Ageing population • Move from State sector to private provision • Development of funded systems, even for State liabilities • Move from employer-sponsored to combination of employer / individual
Implications • Wall of money for investment • Easier and cheaper finance for companies • Higher levels of growth and efficiency • Reduced investment returns, but more sustainable • Release of funds from e.g.US retirees
Issues • Freedom of investment • New opportunities for capital • Support for entrepeneurship • Increase in private equity • Greater balance between equities and bonds