BlackRock Inc. Chief Executive Officer Laurence D. Fink, wholast year said he would invest 100 percent of his personal wealthin equities, said pension funds won't meet their liabilities unlessthey put more money in stocks.

“I do believe most plans that I know have underinvested inequities,” Fink said today at the National Association of StateTreasurers Issues Conference in New York. In a low-interest-rateenvironment, increasing stock holdings is the only way for pensionfunds to meet their obligations, he said.

The Standard & Poor's 500 Index has surged 26 percent thisyear, challenging 2003 for the biggest annual gain in the last 15years, as the Federal Reserve refrained from reducing its monthlybond purchases. Central-bank policy makers have been scrutinizingdata to determine whether the economy is robust enough to withstanda reduction in their support.