In search of higher returns, public pension systems dive deeper into alternative investments

In Politics by Michael Rae

In 2022, many public pension funds reported significant investment losses, primarily caused by plummeting prices of public equities and long-term bonds, which account for nearly 70 percent of asset allocations on average, according to Public Plans Data. The 2023 economic forecast is expected to remain gloomy in the upcoming months as global economic activity faces sharp challenges, highlighted by rising geopolitical tensions in Europe, structural inflation risks, and lingering effects of the COVID-19 pandemic. All these factors raise a critical question of how U.S. public pension funds will allocate their assets to match or beat their often overly aggressive assumed