Indeed. The same decline in pension funds occurred in the 2007 crash and other crashes. Unfortunately that’s often the reality when people manage other’s people’s money. The gains result in large bonusses for the money managers and the losses result in large losses for the investors. The incentives are wrong.
That’s the case with a typical hedge fund but is it the case for pension funds like this one? I thought pension fund managers were not particularly incentivised to take risks for larger returns, but I don’t really have evidence for this assertion.
