What may have once been unthinkable is now the new normal. We live in a world of negative interest rates. For retirement funds, which safeguard the financial security of tomorrow's retirees, it means the future is unclear at best. "We are in uncharted territory," said Innes McKeand, head of equities at the A$165 billion ($112 billion) AustralianSuper, the largest public retirement plan in Australia. "Those of us who have been around a long time are struggling to get our heads around giving money to a European government, and they will give you a negative return for 30 years."
What are the other options — go big on private equity? Explore riskier markets? Or should asset owners simply readjust expectations for returns? Here's what those currently struggling with the conundrum about subzero strategies had to say: