Pension funds could enter into conflict with gov't over investment plans

Pension funds are increasingly looking at the investment potential of foreign markets. The reason for this is simple, the number of companies with attractive high calibre shares with good returns on the WSE is very low. However, the idea is meeting with strong opposition from the government. The funds claim they are under pressure to invest prudently in the interest of future pensioners, and not for the good of the state. Dawid Sukacz, a member of the CU PTE BPH BU WBK management board, claims that the desire to invest in foreign markets is the result of the growing need for portfolio diversification. "The domestic market cannot guarantee this. Moreover, the WSE lacks companies from many sectors, especially those capable of paying high and stable dividends," said Sukacz. Another reason for the drive towards foreign investments, is the growing value of funds' assets and the need to insure themselves against a currency crisis. At present, the funds are entitled to invest only 5% of their assets abroad, which Sukacz says, "Is a far too low a percentage, as it does not allow us to diversify and limit our risks." (Puls Biznesu, pp. 1, 9) M.M.