European Pension Survey

European Pension Survey

Our European Pension Fund Survey presents insights from 126 senior managers and executives of defined benefit pension schemes on their market outlook and allocation plans, the role of sustainability in their investment strategies and their use of outsourced asset management services.
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Insights from European Pension Funds

Europe’s defined benefit pension funds have cause for optimism in 2024. They emerged from the economic challenges of the past two years with improved funding levels, providing greater leeway as they plan for the future. The investment climate remains uncertain, with higher-for-longer rates and slower growth expected in most advanced economies, but opportunities abound in public and private markets for investors with a diversified and risk-conscious approach.

Our European Pension Fund Survey captures the views of defined benefit pension experts at this pivotal moment on key issues from the potential risks posed by geopolitical tensions and the 2024 election super cycle to the attractiveness of investment opportunities in core fixed income and private credit. The survey demonstrates the importance of sustainable investing for many pension funds and looks at their plans for outsourcing portfolio management.

Finding Opportunity in Uncertain Markets:
Three Themes for 2024

Reasonable Alternatives

The attractiveness of fixed income is underscored in the survey, with investment-grade debt and private credit topping the list of asset classes expected to generate the highest risk-adjusted returns in the year ahead. To take advantage of these opportunities, nine in 10 respondents (94%) plan to increase or maintain their allocations to these asset classes.

Which three asset classes do you expect to have the highest risk-adjusted return in the next 12 months? 

Sustainable Commitment

Nearly half of respondents (45%) allocate more than 20% of their total portfolios to sustainable investments, underscoring how deeply this approach is ingrained in European defined benefit pension funds. Climate transition risks rank first among the sustainability themes shaping policy and portfolio decisions.  

My allocation to sustainable Investing… 

External Expertise

Seven in 10 respondents (72%) said they delegate the running of some or all of their investment portfolio to an external manager, highlighting the importance of this service to pension funds. The list of reasons for outsourcing was topped by a desire to broaden and improve the investment expertise driving portfolio management. 

If you are able to outsource aspects of your investment portfolio, what do you anticipate your approach will be in the next 12 months?

European Pension Survey
Defined-benefit pension funds have cause for optimism amid uncertain markets. Our European Pension Survey captures their views on investing and industry trends.
european pension survey
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