Pension funds neglect human capital when setting investment policy, say experts
Pension funds should always take into account human capital, or the career perspective of their members, when determining how much risk they can take with their investments. But they too often fail to do this, according to experts. The degree of certainty of future labour income affects the risk capacity of pension participants; the more predictable and stable their income, the more risk they can shoulder, argued Thomas Pistorius, a risk manager at Pensioenfonds Vervoer, the €37bn fund for the...
