21-08-2024, 06:22 AM
"How pension funds invest their money?
CPF Board will never understand such terminology and general practice
Pension funds can make investments into stocks, bond, real estate, and other assets. However, they have to be prudently managed compared to other types of funds due to their lower risk tolerance.
For many years, they mainly invest into stable stocks and bond. [8] In order to keep a high returns, with changing market conditions, they started to invest into other assets.[9] Currently, many pension funds are moving away from managing active stock portfolios towards passive investment methods, focusing on index funds and exchange-traded funds (ETFs) that replicate market indices. Additionally, there's an increasing trend to diversify into alternative assets like commodities, high-yield bonds, hedge funds, and real estate."
Note
Why CPF Board is the only abnormal pension funds defer from the others?
https://en.wikipedia.org/wiki/Pension_fu...l%20estate.
CPF Board will never understand such terminology and general practice
Pension funds can make investments into stocks, bond, real estate, and other assets. However, they have to be prudently managed compared to other types of funds due to their lower risk tolerance.
For many years, they mainly invest into stable stocks and bond. [8] In order to keep a high returns, with changing market conditions, they started to invest into other assets.[9] Currently, many pension funds are moving away from managing active stock portfolios towards passive investment methods, focusing on index funds and exchange-traded funds (ETFs) that replicate market indices. Additionally, there's an increasing trend to diversify into alternative assets like commodities, high-yield bonds, hedge funds, and real estate."
Note
Why CPF Board is the only abnormal pension funds defer from the others?
https://en.wikipedia.org/wiki/Pension_fu...l%20estate.