[OPE-L:114] [OPE-L:350] Re: Re: working-class savings

Francisco Paulo Cipolla (cipolla@SOCIAIS.UFPR.BR)
Mon, 23 Nov 1998 11:15:45 -0300

Gerald Levy wrote:
I wonder about the idea that pension
> fund monies stay within the US. If by this it is meant that pension fund
> monies in the US tend to be invested in US stock markets, then that is
> probably correct. However, pension funds generally purchase so-called
> "blue-chip" stocks of major corporations which are thought to be
> "low-risk". Yet just about all of the "blue chips" are transnational
> corporations (with corporate headquarters in the US) so the money doesn't
> really just stay in one country.
>From all that I have read it seems that there is a national bias in the
uses of American Pension Funds. By that it may be meant investment in
U.S. companies via U.S. stock markets. The fact that these funds are
used by corporations which have an international would imply that
national working savings finance international capital accumulation.
However, it remains to be seen on what sort of companies are these funds
invested (small, medium, large, mainly national, transnational, etc.).
The article I mentioned (Uses of Pension Funds) may give some info
regarding this.
Recently, Paolo Giussani sent me a paper of his on "Empirical evidence
for Trends towards Globalization". On Table 13 on Portfolio Allocation
(%) of Pension Fund Assets, 1992. The data suggests that the portfolio
investment of American Pension Funds is strongly biased: the ratio
between international Bonds and Equities/National bonds and Equities is
only 5,49% as compared with 16 and 26% for Japan and UK respectively.
(Gemany's ratio is even lower: 2,25%)
If Paolo Giussani is out there 'listening' he could clarify to us the
source for these numbers (invisible on the fotocopy he sent me!). Paolo,
what is the source for table 13?

Paulo Cipolla