Seriously, are they?

Pension funds saw huge losses when the dotcom bubble burst - but there were warning signs that it would burst long before it actually happened.

So why didn't the funds clear out of riskier equities and put their money in safer investments such as gold?


About two weeks ago, pension funds were reported to be back in the black - then the stock falls hit and they were again falling into the red.

However, Morgan and Stanley had issued a very clear warning of stock falls being imminent two months before hand - so why did the pension fund managers wait until the actual fall before reducing risk, and not long before?

It's funny - last year pension managers were moving from conventional investments and into hedge funds. These have always been flagged as high risk. Yet they went ahead anyway, and now we're seeing hedge funds dropping like flies.

I can't help but be given the impression that pension funds are too easily mismanaged by sheep who follow the crowds, rather than make any attempt to use their initiative.

A fair comment?

I think you are correct. it's easy to mismanage them, I think that there needs to be far more oversight on them than there currently exists. Also, more responsibility for them needs to be taken.