Cash-strapped governments should resist telling pension funds how to invest

Stock markets continue to hit record highs, yet many governments remain strapped for cash—and some are eyeing pension funds to cover fiscal shortfalls.

They should resist the temptation to mandate that pension funds invest more domestically, said Associate Professor of Finance Sebastien Betermier in an interview with CNBC. 

“At a time when pension funds have become really big, and the governments themselves are cash-constrained, it’s becoming increasingly tempting for governments to go: maybe I can redirect it for other policy goals,” Betermier added.