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> Asset managers at pension funds need to make some target returns on their part of the portfolio (say 5% on high-yield corporate bonds). They're just mundane d
by _qulr 6y ago
> Asset managers at pension funds need to make some target returns on their part of the portfolio (say 5% on high-yield corporate bonds). They're just mundane desk jobs, buying and selling contracts on computer screens.
This may be precisely the problem. Pension funds have an oversized influence on our whole economy. They deserve much more care and scrutiny than this.
> risking the clients taking their money to other asset managers promising higher returns.
Not sure I agree with this. Pensions aren't operating in a competitive market, they're typically associated with a particular employer, acting on behalf of the employees.
- em500 6y ago> This may be precisely the problem. Pension funds have an oversized influence on our whole economy. They deserve much more care and scrutiny than this. I completely agree on the abstract level, but I have no clue how to get anything actionable out of that. > Pensions aren't operating in a competitive market, they're typically associated with a particular employer, acting on behalf of the employees. The funds as institutions probably aren't, but the specific asset managers tasked with the implementation, either directly employed or contracted by the funds, certainly are operating in competitive markets.