Public pension plans in Canada and Australia achieve efficiencies through professional asset management at scale

Canada and Australia are both examples of successful pension fund management, said Prof. Sebastien Betermier in a keynote presentation to the Government Employees Pension Fund (GEPF) Thought Leadership Conference in Cape Town, South Africa. While there are differences, both capture similar efficiencies: getting people to save money early, so they benefit from compounding. The assets in these funds are professionally managed, which provides multiple advantages. For one, fund managers can be patient, and make decisions for the long term. They can also hold a wide variety of assets and pool risks and individual members do not need to plan for asset decumulation during their retirement. These efficiencies help the Canadian and Australian public pension plans overcome the challenges of increasing longevity and decreasing yields.