9  For mixed evidence of the countercyclical behaviour of U.K. pension funds during the crisis, see A. Haldane, “The Age of Asset Management?” (Speech delivered at the London Business School, London, U.K., 4 April 2014). www.bankofengland.co.uk/publications/Documents/speeches/2014/speech723.pdf. 10  Recent increases in long-term interest rates have also improved solvency ratios.
Pension managers have superior knowledge of financial markets and of the associated risks that makes them willing to invest in alternative asset classes and to engage in arbitrage between markets.4 All of these activities make financial markets more complete and, so, enhance their efficiency.