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S&P 500 returned about 92.09% from 2004 - 2014. They referenced it being a 160 billion dollar fund so they really should have been looking at returns of closer
by totalrobe 12y ago
S&P 500 returned about 92.09% from 2004 - 2014.
They referenced it being a 160 billion dollar fund so they really should have been looking at returns of closer to 100 billion...
http://ycharts.com/indicators/sandp_500_total_return_annual http://ycharts.com/indicators/sandp_500_total_return_annual
*although if all large pensions/trusts/endowments were passively invested in the market, some of these financial companies on the s&p list would not have been able to steal so much from pensions so i'm wondering what type of effect that would have had on total market returns
- kasey_junk 12y agoNot that it impacts the heart of your comment, but that is not risk adjusted returns. To get that exact return you'd have to have 100% allocation in the s&p 500, which would also be cause for articles...
- encoderer 12y agoNice try. $SPX is not where you want $160bn of pension money. 10% maybe, with similar investments in treasuries, commodities, cash, etc.
- bradleyjg 12y agoI somehow got downvoted for pointing this out yesterday, but with target return rates of 7-8%, pensions can't invest in what most of us would consider a prudent portfolio. At least not in a low inflation environment (since targets seem to all be nominal rather than real). While I would agree that a pension fund shouldn't be in all equities (or investment with similar risk profiles) if the fund managers are mandated to target 7.5% returns its hard to see how they can include a sizable cash or treasury component and expect to hit that.
- encoderer 12y agoLeverage
- totalrobe 12y agoThat is true but there are safe investment avenues that should be returning more than .025% over 10 years (40 mil / 160 bil).