The Plight of the Pension Fund Officer
5 Pages Posted: 22 Feb 2018
Date Written: February 15, 1988
Pension fund officers, the poor unlucky souls who run pension funds, are inundated with good real or simulated investment performance records brought to them by used car salesmen investment managers. This is no accident – failure does not sell – either to the pension fund officers themselves or their higher ups.
Many pension fund officers choose investment strategies from among the most attractive performance reccords presented to them – expecting similar performance going forward. These pension fund officers are likely to be disappointed. Subsequent performance, even if positive, is unlikely to be nearly as good – and there is not much pension fund officers can do to avoid it.
Keywords: performance measurement, manager choice, pension fund management
JEL Classification: G00,G10,G11
Suggested Citation: Suggested Citation