Hey, It’s Like Selling Stocks to Koreans

Pension fund asset allocations around the world. Dig the differences, like zero percent allocation to equities in Korea, versus the U.S./Australia where almost half is equities. [-]

Allocations

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Comments

  1. Anthony says:

    Where is France ?

    • Levi says:

      The source data has blank entries for France: http://stats.oecd.org/viewhtml.aspx?QueryName=600

      Assets as a % of GDP look to be close to zero: http://stats.oecd.org/Index.aspx?DatasetCode=PNNI

      I believe that govt plans in France are unfunded, I'm not sure about private plans though — unless they cover half the economy, unfunded private plans seems like a recipe for failure — structural economic changes could leave an industry fund with lots of liabilities and few paying members.

      (Although speaking as an Australian whose contributions in the last 4 years are the only thing that stopped my balance moving downwards, maybe it's just replacing one evil with another)

  2. Reinumag says:

    The "other" category sort of obscures the facts here.
    I tried to pull out that data myself but did not have enough time to figure out all the tricks with the database. I only got blank entries for Estonia, which however is represented on the chart. What struck me was the very low weight in equities there – I know that it must be much higher.
    Overall, I'd be very careful comparing countries with very different pension systems.

  3. Leonid says:

    http://www.reuters.com/article/2011/06/29/idUSL3E

    odd that – why do these numbers differ from the OECD report i wonder