This is a good chart on returns of SWF (Sovereign Wealth Funds) and PPF (Public Pension Funds)
Most large funds cannot beat the S&P500 return of c.10%pa.
S&P is 100% equity. GIC is 60/40 portfolio. NZ super is 80/20 portfolio, and they mentioned if an event like GFC happened, their portfolio will drop 55%. Not an apples to apples comparison.
True, thanks for the comment. Guess the 55% drop refers to NZ super portfolio with 80% equity 20% bonds...
S&P is 100% equity. GIC is 60/40 portfolio. NZ super is 80/20 portfolio, and they mentioned if an event like GFC happened, their portfolio will drop 55%. Not an apples to apples comparison.
ReplyDeleteTrue, thanks for the comment. Guess the 55% drop refers to NZ super portfolio with 80% equity 20% bonds...
ReplyDelete