Read the latest ICPM Research white paper here.

ICPM is thrilled to share the findings of its Research Working Group – comprised of academic researchers and senior officials of large pension funds from around the world – that was formed to investigate the channels through which pension funds as long-term investors can generate productivity gains in the firms they invest in.

Some key takeaways include:

  • Recent research based on Danish data has found that investments made by pension funds increase the productivity of the firms they invest in by, on average, between 3% and 5% (Beetsma, Jensen, Pozzoli and Pinkus 2023).
  • The productivity effect is larger when the equity stake is larger and is held for a longer period. It is also more concentrated among the non-listed and smaller firms.  
  • The four primary channels promoting this productivity effect are the supply of funds channel, the long-term commitment channel, the engagement channel, and the signalling channel.
  • Case studies that illustrate the above channels in action, including PensionDanmark/Stiesdal, PSP Investments/Mahi Pono, PGGM/Amvest, and APG/ANET, demonstrate that multiple channels often operate at the same time and mutually reinforce each other.

ICPM gives special thanks to the Research Working Group members: Roel Beetsma (University of Amsterdam, Copenhagen Business School), Sebastien Betermier (ICPM and McGill University), Jaap van Dam (Chair – ICPM, PGGM), Svend E. Hougaard Jensen (Copenhagen Business School), Felix Lanters (PGGM), Mark Lyon (Border to Coast Pensions Partnership), Allan Lyngsø Madsen (PensionDanmark), Michael Neft (APG), Flo Pattiwael (PGGM), Andrew Reeve (Cbus Super Fund), Alexandre Roy (PSP Investments), William Scott (CPP Investments), Mikhail Simutin (ICPM and Rotman School of Management, University of Toronto).

For more information or to suggest topics for future Working Groups, please contact