Pension Funds Pour Billions Into Alternative Assets

The video explores the evolution of pension systems from the Roman Empire to modern-day America. It highlights the introduction of pensions in the 19th century in the US, with Massachusetts being the first state to offer a pension plan for state employees. The federal government followed with the Civil Service Retirement Act. By the mid-20th century, public pensions became common. Today, the largest public pension in the US is CalPERS, which faced significant losses in 2022 due to inflation and high interest rates. To counteract these challenges, US pensions are increasingly investing in alternative assets like private equity and real estate.

What strategies are US pensions exploring to achieve higher returns?

What was the total amount public pensions invested in alternative assets by the end of last year?