In order to be prudent and side step volatility pension fund managers have lightened up on stock holdings.
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I read the article to basically say “pension funds are screwed.”
Equities, peripheral countries and corporates are too risky, but major governments don’t provide enough yield.
Good luck with that one. I’d be interested to know the needed rate of return that some of the larger funds have just to meet their obligations.
leftcoast’,
the needed rate is around 6-7%…it used to be a little higher.
The more conservative managers are in the 3-5% camp…
Thanks!