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Public pension funds had an average gain of 4.67% in Q3 as managers moved out the risk curve by...

Public pension funds had an average gain of 4.67% in Q3 as managers moved out the risk curve by buying lower-rated debt and longer maturities (AGG gained just 1.58%). Importantly, the gains raised the average annual return for the decade to 8.2%, the first time since 2007 Q1 it's above 8%, and pretty close to what actuaries predicted.
Comments (2)
  • untrusting investor
    , contributor
    Comments (9950) | Send Message
     
    Guess it is what it is, but surprising that pension funds were able to generate an average return of 8.2% over the last decade. Supposedly the current allocation average is about 55% equity and 25% bonds, but that differs quite a bit from what the largest 100 US pension funds reported a few months ago.
    6 Nov 2012, 08:23 AM Reply Like
  • DigDeep
    , contributor
    Comments (2370) | Send Message
     
    In the 10 year period 11/5/02 to date, the S&P moved from 900 to 1400. 2000 peak to date would show a flat equity return.
    Bonds did bette over the same period....wonder how bonds will do when the fed unwinds its balance sheet....?
    6 Nov 2012, 01:18 PM Reply Like
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