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Arguably pension funds are best placed to take on (diversified) high risk investments. They have a long time horizon (20-40 years), and their members can't arbi
by nly 4y ago
Arguably pension funds are best placed to take on (diversified) high risk investments. They have a long time horizon (20-40 years), and their members can't arbitrarily withdraw their funds.
If you've been sat in high quality government bonds for the last 15 years then you've basically made nothing, or even a loss, in real (inflation adjusted terms).
My pension fund is in 100% global equity. I've got no choice if I want to retire at a sensible age.
- t_mann 4y ago'Our investors can't get out' is an absolutely terrible justification for doing ultra high risk investments. 'We have a long-term horizon', which in this context can easily translate into 'by the time this blows up everyone responsible will have long left the company / vested their bonuses' is hardly better. The only good justification for doing high risk investments is 'our investors know, they understand the risks and they want us to do this'.