Rubenstein: Some State Pension Funds Are Massively Underfunded

The video discusses the challenges faced by pension funds, including underfunding and the need for higher returns. It highlights the role of fixed income and private equity in improving fund performance. The US Social Security system's issues are examined, emphasizing demographic changes and funding gaps. The video also explores alternative investments and the controversy surrounding ESG in the US.

What is the current funding status of many state pension funds in the US?

• Underfunded

• Equally funded

• Overfunded

• Fully funded

How have higher fixed income rates affected state pension funds?

• They have led to increased contributions from members

• They have improved the performance of fixed income portfolios

• They have worsened the funding status

• They have had no impact

Which state is mentioned as having a well-funded pension system due to private equity investments?

• California

• Illinois

• Kentucky

• Washington

What is a major challenge for the US Social Security system?

• It is similar to Canada's system

• It is fully funded

• It is a pay-as-you-go system

• It has excess funds

What is one proposed solution to address the funding gap in the US Social Security system?

• Increase benefits

• Decrease taxes

• Increase taxes on Social Security

• Eliminate the system

What type of investments are expected to outperform public equities?

• Real estate

• Savings accounts

• Alternative investments

• Government bonds

What is the current status of ESG criteria in investment decisions in the US?

• It is mandatory for all investments

• It is ignored by all investors

• It is controversial and politicized

• It is widely accepted without controversy