Pension funds use ETFs as access tools

Towers Watson senior investment consultant Christopher Sutton says increasing numbers of pension funds are looking to diversify across asset classes, which means accessing new asset types. He says: "A number of these pension funds go to new asset classes for the first time, with perhaps not as much knowledge and insight as to how they work. "We are definitely seeing some pension funds using ETFs as a way to first ‘dip your toe in the water' of a new asset class." Aon Hewitt global principal Martin Kraus says: "We think the main potential benefit of ETFs to our clients and pension f...