ACCF agrees theoretically with the possibility that environmental and social factors are materially important to institutional investments, instead accusing New York City of failing to live up the real possibilities of “modern ESG” investing.
A study by the CRR finds that state and local pension funding is expected to improve in 2017 due to strong market returns, but a new
approach to providing adequate contributions is needed to make the most out any recovery.
State Treasurer Nancy K. Kopp says, “Recognizing that both the inflation experience and expectations for future inflation remain lower than the rate currently assumed, the Board felt it reasonable to reduce the expected return accordingly.”
Many of the largest pension plans in the U.S. are lowering assumed long-term rates of return in light of global economic headwinds, which further contributes to declining funded ratios and puts a strain on cities' credit ratings.