Next economic crisis to come from pension funds

Hong Kong

The next financial crisis will stem from pension funds that take on risk to make up for shortfalls in their funding positions, according to Guan Seng Khoo, head of enterprise risk management at Alberta Investment Management Corporation.

Khoo, former senior director of risk management at Singapore's sovereign wealth fund, Temasek, was speaking at the Asia Risk Transition Management forum in Hong Kong last week. He said unregulated pension funds pose significant systemic risks as they struggle to