Interest in responsible investment has seen an exponential growth over the past decade. Investments are pouring into ESG-based products at an accelerating rate. The trend is good, but not fully without problems.
The investment strategies of the various earnings-related pension insurance companies generally appear to be very similar. Would it be reasonable then to abandon the institutional decentralisation of investment activities within the earnings-related pension system if all of the pension insurance companies are anyway ending up with similar investment strategies?
Diversification has decreased in the financial markets due to the growing central bank stimulus. Investors are hunting for yield in more risky and illiquid assets which tend to correlate with each other in distressed markets. Can slow-moving investments still bring diversification in ever-faster liquid markets?