Working Paper
The Case Against Stock in Public Pension Funds
Lawrence N. Bader and Jeremy GoldWP2004-20
Sign up or sign in to download
Abstract —
A government has $1 million of stock in a pension fund that covers its employees. The liability can be matched with a $1-million dedicated bond portfolio. What are the consequences of shifting the pension fund from equities to bonds? The paragraph above duplicates the opening paragraph of The Case Against Stock in Corporate Pension Funds (Bader 2003), except that we have substituted a governmental plan for a corporate plan. Does this substitution matter?
Pension Research Council
The Wharton School of the University of Pennsylvania
3620 Locust Walk, 3000 Steinberg Hall–Dietrich Hall
Philadelphia, PA 19104-6302
Tel: 215.898.7620 | Fax: 215.573.3418 | prc@wharton.upenn.edu
Privacy Policy
Website developed by Zero Defect Design LLC.
