ROOM TO GROW: In developing Asian countries, a low proportion of superannuation funds is invested in equities so there is greater scope to do more. In Thailand, for example, 17 per cent of the top pension fund's assets are in stocks compared with 61 per cent in Hong Kong, according to OECD data.
HOW do you stop life insurers and pension funds from drowning in cash? Let them float on a thicker cushion of equity.
Taiwan's Financial Supervisory Commission did just that recently when it lowered the risk-based capital requirement for insurers. The change, combined...