Too Big to Fail: Risk - Return Considerations for

Pension Trustees

Moderator:

Erin Shackelford , Trustee Leadership Forum for Retirement Security, Initiative for Responsible Investment, Harvard Kennedy School

Presenters:

Simon Johnson , Ronald A. Kurtz (1954) Professor of Entrepreneurship, Professor of

Global Economics and Management, MIT

Heather Slavkin Corzo, Director of the AFL -CIO Office of Investment

Agenda

Introduction

Erin Shackelford, Trustee Leadership Forum for Retirement Security, IRI, Harvard Kennedy School

Presentation:

Heather Slavkin Corzo, Director of the AFL -CIO Office of Investment

Presentation: Too Big to Fail Risk -Return Considerations for Pension Trustees

Simon Johnson, Ronald A. Kurtz (1954) Professor of Entrepreneurship, Professor of Global Economics and Management, MIT

Questions and Comments

Conclusion

Universal Investors, including pension funds, benefit when the economy is

healthy.

of such size that their investments are diversified across all asset

classes and across investment opportunities within those asset classes, and therefore can be

said to be invested in the economy as a whole

economic growth that lifts the value of all investments, as opposed to the

appreciation in the price of a particular investment, is of paramount importance to

Universal Investors

of their size and diversification, public pension funds are

examples of Universal Investors

Investors and Socially Responsible Investors: A Tale of Emerging Corporate Governance , May 2007

And , alternatively, Universal Investors suffer when the economy suffers.

fraud, corruption or lack of management skills corporations or governments extract value from the economy and society, creating a poorer, less just and

Investors and Socially Responsible Investors: A Tale of Emerging Corporate Governance , May 2007