Three ways instos should respond to falling public assets

Heavy drops in equity market valuations over the past two weeks are set to drastically impact the portfolio sizes of asset owners and pension savers across Asia, and will likely point to drastically lower returns this year. Pension funds need to respond by preparing for tougher times to come, particularly through extensive asset diversification and reassessing their investment assumptions.  Hong Kong's Mandatory Provident Fund schemes offer an example of the coming pain. Researc…