The globalization of savings continues

Pensions in the U.S. are not the only ones under pressure to generate above-market returns. For confirmation, look no further than China's National Social Security Fund. It is grappling with prospects of an aging population that pensions here can certainly identify with. Unsurprisingly, the China fund is looking abroad. The fund is allowed to invest up to 20 percent of its assets abroad. That's about $6 billion. The initial investments will be up to $1 billion, but no details have been announced. It will be interesting to see how passive they will be. I do not expect them to turn into a corporate governance force anytime soon, but you never know. Their initial destination may be alternative investments. Join the herd.

For more on this:
- Here's an AP article