Despite expecting increased debt and social unrest in the global picture, pension fund executives believe expanding global trade will lead them to increase their global equity allocations during the next five years. A sample of 50 senior pension fund officials polled by the Center for Investment Policy Studies found 37% expect their pension funds to own more global equity during the next five years. Some 49% expect to hold more global private equity in the same period; only 6% expected to hold less equity and 11% to hold less private equity.
The expansion of global business and trade was the most important factor leading to increased global equity investment; it was cited by 61% of the survey's respondents. However, 37% said increases in global debt as a percentage of GDP would lead them to allocate less and 34% said social unrest created by the uneven growth of global wealth would lead them to invest less in equity.
