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Nice try. $SPX is not where you want $160bn of pension money. 10% maybe, with similar investments in treasuries, commodities, cash, etc.
by encoderer 12y ago
Nice 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).