In general, PFs are encouraged to invest in Government Securities as in the case of Chile, Indonesia and Singapore although some countries like Hungary and Philippines are permitting some portfolio diversification by allowing investment within limits, in non-Government paper. It is also observed that many pension or provident funds voluntarily invest in Government Securities above the minimum requirements.
We are all aware that  BIS Review 26/2009  5  without safe and adequate capital, the bank intermediary function will not run optimally, and industry resilience to inauspicious conditions, such as now for example, will be undermined.