Retired against the new “masters of the universe”

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After decades during which the pensions nurse were canceled in many parts of the world-paid by scandal, accounting changes and other policy modifications-the pendulum swings quickly. In many cases that may be appropriate. In other cases, it may be open to abuse.

Consider the state of Italy’s pension scheme, Enasarco sales representative, which was disclosed last week Customize 67 percent From the entire European stock wallet to one arrow, Mediobanca. This group is at the heart of the Battle of Power on how to integrate the Italian banking sector. This plan refused to comment on the reason, but critics pointed to alliances with government figures, supported by the strange that the Italian treasury is the same as the retirement pension organizer.

The contribution may not turn into a “fruitful investment”, with the great doubts of asset management approaching (for example if it helps in facilitating a successful banking integration). But it is certain that it is a great gambling on a deal where there is no place in the investment portfolio in the plan that should focus on providing stable retirement income for hundreds of thousands of retirees, and not using their money to play political energy games.

More common these days the “productive investment” is associated with private capital, which reflects the sector genius in isolating the poster and then Echoes generate It is the approval of politicians on both sides of the Atlantic.

London mayor’s Lord will certainly ascend to push him to pension to enhance special capital allocations. Based on May Palace’s house agreement He pledged that the signed pension funds will put more in areas such as private stocks and debts. He now convinced adult employees to pledge that they will appear less in the fees and more than the potential for assets like private capital when allocating assets.

Legal and public, and at the same time, last week A deal With BlackStone to customize up to $ 20 billion of their own credit installments.

Essentially, one of the fastest insurance companies in Europe went in a move forward with a great acquisition. Athora, APOLLO insurance vehicle that was buying retirement plans across continental Europe, The purchase announced Among the UK’s pension insurance, which is the same on the specific advantages of the employers.

Athora is owned by 25 percent by APOLLO – whether directly and by the American Insurance Company for the ATHENE ATHENE Special Capital. But even if this line is largely dotted, Apollo’s effect is clear. It controls five out of 11 seats in the board of directors (although it indicates that it contains a “conflict committee” at the level of the board of directors headed by an independent director).

A clear way to work has been followed by European pension plans he spent in the past few years of ascending. “After the new acquisitions,” Athora says in its annual report. This means ensuring “a greater percentage of the return that searches for assets … which is primarily high -quality credit assets.”

Special capital has clear advantages. It tends to be in the long term in the structure, in line with retirement obligations. Although the fees may be higher, the returns may also be. As a rapidly developed part of the landscape investors to finance companies, investors cannot ignore it.

But there are obstacles. The first is that, unlike their counterparts in the public, capital investments for transparency or in some cases are not accurately evaluated. In March, the UK’s Financial Conduct Authority, which supervises asset managers, published Detailed On private capital evaluation practices. I found great reasons for anxiety. He urged companies to manage conflicts of interest more effectively and ensure independent assessments, supported by appropriate governance and documents systems.

Possible conflicts are more severe in insurance companies controlled by them by private capital companies-either they have become a trend in the United States, or partial as in Europe, where organizers seem more frequency in full alliances.

Twenty years ago, “Masters-Pe-The-Universe” was generally seen as the smartest people in financing. But banks and taxpayers alike learned in 2008 that they accumulated the possibilities of stakeholders in their favor. Today, as the best brains that are attracted towards asset management and private capital in particular, it is the retirees who may be careful.

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