This is an experiment of high importance to everyone who is retired, or who is planning to retire, and anyone who wants to see the Casino Capitalism of today transformed into a new, co-creative capitalism for the 21st Century.
We have our hypothesis: pension trusts have the size, the purpose, the power and the longevity required to generalize the proven practices of cash flow based investing common in Real Estate to investment in enterprise of any kind; they have as fiduciaries both the right and the responsibility to use those unique capabilities to optimize their ability to provide income security in retirement to successive generations of current and future retirees.
We have our expectations. There will be a natural fit between enterprise as a time series that is open-ended, ongoing, and therefor evergreen, wealth creation as a time series that is also open-ended, ongoing and therefor evergreen and pension trusts that are also a time series that is open-ended, ongoing and therefor evergreen, all aligned around the shared values of optimizing cash flows over time for enterprise, for investment, for society, for the economy and for the environment within which we all must live, work, and retire.
The advantages to pension investing will include:
- engineered returns
- controlled costs
- chosen impacts
- streamlined design
- transparent management
The benefits to plan executives, sponsors and participants will include:
- availability of benefits, now and later;
- adequacy of benefits, now and later;
- affordability of benefits, now and later.
- to society: economic inclusiveness and financial authenticity
- to the economy: robust, resilient and regenerative patterns of wealth circulation that drive sustainable prosperity as constant, continuous and enduring (not boom-and-bust)
- to the environment: ownership of impacts on climate and resources
We need as safe place to try
- de-financializing established enterprise
- sponsoring new enterprise
- investing for impact.
A pilot project, away from the engrained habits (and vested interests) of the default form of investment as securities trading, that is scientifically controlled and rigorously tested along multiple measures: strategy, leadership, governance, fiduciary responsibility, teaching and learning, impacts on society, the economy and the environment.