Updated Thursday, April 24, 2014 as of 5:52 PM ET
Portfolio - Investment Insights
BlackRock’s Fink Says Pensions Should Invest More in Stocks
by: BLOOMBERG NEWS
Thursday, December 5, 2013
Print
Email
Reprints

BlackRockChief Executive Officer Laurence D. Fink, who last year said he would invest 100% of his personal wealth in equities, said pension funds wont meet their liabilities unless they put more money in stocks.

I do believe most plans that I know have underinvested in equities, Fink said today at the National Association of State Treasurers Issues Conference in New York. In a low interest rate environment, increasing stock holdings is the only way for pension funds to meet their obligations, he said.

The Standard & Poors 500 Index has surged 26 percent this year, challenging 2003 for the biggest annual gain in the last 15 years, as the Federal Reserve refrained from reducing its monthly bond purchases. Central-bank policy makers have been scrutinizing data to determine whether the economy is robust enough to withstand a reduction in their support.

Pension funds have to focus on the longer-term view and cant look at quarterly or yearly returns when allocating money to assets, Fink said. Since March 9, 2009, when the stock market closed at its lowest after the financial crisis, the S&P 500 has advanced 165 percent.

I truly believe the experience weve just witnessed over the last several years explains more than ever why you have to have an outcome-oriented investment process, Fink said, referring to the stock market rally.

Get access to this article and thousands more...

All Financial Planning articles are archived after 7 days. REGISTER NOW for unlimited access to all recently archived articles, as well as thousands of searchable stories. Registered Members also gain access to exclusive industry white paper downloads, web seminars, blog discussions, the iPad App, CE Exams, and conference discounts. Qualified members may also choose to receive our free monthly magazine and any of our daily or weekly e-newsletters covering the latest breaking news, opinions from industry leaders, developing trends and growth strategies.

Already Registered?

Lists
Advisors on the Move: Cambridge Snags $500 Million Team

Current Issue

The April Issue is now online!


TWITTER
FACEBOOK
LINKEDIN
Already a subscriber? Log in here