Investment Restrictions A European Perspective

European Pension Fund Assets Source: William M Mercer

European Pension Fund Assets Pension Assets as a % GDP

The “Prudent Person” Countries Pension Assets as a % GDP

Prudent Person Characteristics Separation of assets Role of trustees Self investment limits (eg 5%) Concentration of investment limits (eg 10%) Statements of Investment Policy and Objectives Supported by disclosure/minimum funding standards

The Lightly Restricted Country! Pension Assets as a % GDP

The Most Restricted Countries Pension Assets as a % GDP

Summary of Restrictions

Equity Content by Country

Reasons for Equity Variations Restrictions but also Absence of equity culture in many Continental countries Underdeveloped domestic capital markets Things are changing rapidly New Pensions Directive

Investment Restrictions A European Perspective