The Global Pensions 100 Panel is split over the fate of the eurozone, our survey found.
Responses were divided 50/50 over whether economic problems in countries such as Portugal, Ireland, Italy, Greece and Spain could result in changes to the constitution over the next five years.
One respondent said: “Yes, I expect there to be a fracture, with some countries leaving the monetary union.” Another who expected a fracture replied: “There is [an] economic union without political union or harmonisation of policy. There are no pan- European institutions (except the ECB) that have the power and reach of a US Congress or Treasury.”
The findings follow a warning from Schroders chief investment officer Alan Brown, who said pension funds should be preparing their operational arrangements for a potential fracture in the eurozone.
Speaking at the Schroders International Media Conference in London, Brown said it was unclear whether the peripheral countries would leave the eurozone, or whether larger countries like Germany would leave.
He said there was a “high probability” that in five years the current membership would change and Schroders is already preparing for the possibility.
“This is something we’re thinking about today”, said Brown. “Not every euro will necessarily be equal. It’s pretty clear what you’ve got if you have euros from a German bank in Germany.
“It may be clear what you own if you have euros in a Greek bank in Greece. But what happens if you own euros in a German bank in Greece? I don’t know, but I don’t plan to find out.”
The Pension Protection Fund (PPF) is consulting on proposals to charge a "risk reflective" levy for commercial defined benefit (DB) consolidation vehicles.
The funding gap across FTSE 350 schemes could be slashed by as much as £275bn if schemes look beyond traditional ways of creating value. Victoria Ticha examines how
There will be "many flavours" of defined benefit (DB) consolidators but consolidation will only be the right answer for a minority of schemes, Alan Rubenstein says.
Work and Pensions Committee (WPC) chairman Frank Field has questioned the regulator on what lessons it can learn from the experience of the Kodak Pension Plan No.2 (KPP2).