Despite concerns about the impact of coronavirus on economic growth, corporate earnings, and stock markets, the downfall will not last long, said Paul Cobberup, Danica Pension's investment director in Copenhagen. This pension fund has accumulated $75.6 billion. “A large stock market downfall reflects investors’ mood but not the state of the EU economy. From this point of view, the value of shares is now very lucrative,” the source said. The Danish Pension Fund PBU also expects the stock commodity markets downturn and to be short-lived. Measures taken to combat the virus will have a beneficial effect on the pandemic.
For pension system members who are close to going on a well-deserved rest, the National Employment Fund in London, worth $13 billion, has prepared a safety cushion, so most of the organization’s customers are unlikely to feel market decline. “We got prepared for such situations by diversifying our portfolio. This allows us to be independent of any asset class,” says Mark Fawcett, director of NEST. “We are in a good position, as we can buy securities that are underestimated by the market, which will give us advantages in restoring the situation.”
Source: https://www.japantimes.co.jp/news/2020/03/03/business/pension-system-reform-plan/#.XnMoR9MzZLB
Photos are from open sources.
