Putting it all on red
The rules encourage public-sector pension plans to take more risk
IMAGINE two kinds of investment funds, both of which have the same aim: to provide pensions for their employees. You might think that they would invest in a similar way. But when it comes to American pension funds, you would be wrong. It turns out that public funds have a rather different, and more aggressive, approach to risk from private ones (and indeed from their counterparts in other countries).
This article appeared in the Finance & economics section of the print edition under the headline “Putting it all on red”
From the July 30th 2016 edition
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