THERE’S already too much money chasing too few assets and yet even the most sober investors seem ready to add to the problem.
Calpers, the US$495bil (RM2.1 trillion) California public-employee pension fund, is planning to put more money into chasing returns by taking on debt worth up to 5% of its fund value – or roughly US$25bil (RM106bil) – to plow into financial assets. It is doing this because it can’t see another way of hitting its long-term return target of 6.8% to meet its promised payouts.
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