Pensions Glimpse A Little Light, But No End of the Tunnel
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  • Jim.

    “And though we had plenty of money, there was nothing our money could buy,
    and the Gods of the Copybook Headings said, ‘If ye don’t work, ye die.'”

    Handing your money to someone you don’t know to do something with it that you will largely ignore, stretches the definition of “work” or “earning” beyond the breaking point.

    It’s magical money. Easy come, easy go.

  • Kolya

    I think you meant to say the total value of public pensions was 2.8 trillion dollars. Something positive that increases by 179 billion cannot equal 2.8 billion at the end of the increase.

  • WigWag

    “…it is typical that, as funds grow, they have a harder time achieving above average investment returns than when they are smaller and more nimble. As time goes on and pension funds get bigger, above average investment returns become harder to achieve.” (Via Meadia)

    Really? It would be very interesting to see a citation for that. Is there actually a preponderance of evidence for this statement or is it just something you saw somewhere and decided to parrot?

  • Wigwag (#3) – I couldn’t point you to a study on this, but it must at the very least be true at the hypothetical extreme (because a fund representing 100% of the market by definition cannot achieve above average returns) and I would be extremely surprised if it was not at the very least true that smaller funds were more likely to achieve substantially above average returns (though also more likely to achieve substantially below average returns). It would be staggering if size did not inversely correlate with variance.

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