부산대학교 도서관

The article comments on the investment of pension fund (PF) assets in an article written by James Barth and Joseph Cordes in the U.S. The benefits of nontraditional objectives in pension fund management are conceptualized by the authors in terms of maximizing individual utility. In their framework of analysis, NTI almost always involves some sacrifice of traditional fund management objectives. It costs something to pursue NT!, although the cost may be worth it if the utility of individual pension fund participants is thereby raised. Alternatively, the increased interest by unions in the possible use of pension funds for NT! could be viewed as a manifestation of the same concerns that gave rise to the union movement: dealing with economic power that is highly concentrated. Wealth is power and wealth is highly concentrated in the United States. In evaluating nontraditional pension fund investing, it is important to analyze the way pension wealth is now managed and the way corporate decisions are now made. One of the most succinct descriptions of the former is provided by Julius Allen. In general, pension funds tend to be managed by very large financial institutions. For the most part, the trustees of pension funds don't participate in the affairs of the corporations in which they hold stock and do not exercise their voting rights.