Pensions

Pension funds pile on risk just to get a reasonable return

An investor used to get a 7.5% return by holding safe bonds. To earn that now, research finds, takes a more volatile mix

Pension funds pile on risk just to get a reasonable return
Photo: iStock
Pension funds pile on risk just to get a reasonable return
Photo: iStock

What it means to be a successful investor in 2016 can be summed up in four words: bigger gambles, lower returns.

Thanks to rock-bottom interest rates in the US, negative rates in other parts of the world, and lacklustre growth, investors are becoming increasingly creative - and embracing increasing risk - to bolster their performances.

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