AUSTRIA/GLOBAL - The head of Austrian Pensionskasse APK has hit back at recent criticism of pensions investors and claimed pension funds will be important investors once markets normalise again.
The funded second pillar pension regime has come under criticism in recent months for performing poorly last year but Christian Böhm, head of the APK pensionskasse, said pension funds as investors will be essential to any recovery.
"Some companies might be taken public in the wake of the financial crisis but when they are once again listed on the stock exchange pensionskassen will be potential investors which a state can trust," he argued.
He suggested their investments are more transparent than has been seen at some banks or funds with extensive international ties.
Furthermore, Böhm is convinced pension funds will play a more active role as shareholders in future, though he believes pension funds will have to coordinate their actions as shareholders on an international level.
"There will be a greater need for shareholder activism given current events with many large companies having pretended they were owned by no one," said Böhm.
"Larger pension funds will take the lead and take on other funds' voting rights across borders. We should not leave this to purely US-legal organisations which bury a company in lawsuits but see how we can create healthy structures in companies and trigger change from the inside," he added.
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