Rising tensions pose Asia dilemma for US pensions
US state pension schemes certainly don’t lack for problems. Many have nowhere near enough funds to cover growing payout liabilities (see first box below). And they struggle to shift their members from defined benefit to defined contribution schemes which would sap their assets less quickly.
Read also China Life Pension Assets Doubled
One solution would be to improve investment performance. Unfortunately, asset returns have been falling and market volatility rising, in part because of the geopolitical uncertainty and US-China trade tensions fueled by President Trump’s administration.
Read also US. Public Pension Plans Continue to Shift Into U.S. Stocks
The theatre around Trump’s trade war has raised tensions to the point that America’s public asset owners have begun to face explicit political opposition to making investments in Chinese assets.
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