3 ms·

I think you have pension funds exactly backwards. They are typically managed with the goal of reaching their assumed rates of return at minimal risk. With perfo

I think you have pension funds exactly backwards. They are typically managed with the goal of reaching their assumed rates of return at minimal risk. With performance so far above assumed returns, if anything pension funds can afford to take on less risky assets and still meet their goals.

MatteoFrigo 5y ago
This was in the news recently: CalPERS (a giant pension fund of California state employees) is going to add risk in the form of 5% leverage. See https://www.pionline.com/pension-funds/calpers-adds-5-leverage-entire-portfolio https://www.pionline.com/pension-funds/calpers-adds-5-levera...