Institutional Investing Has Entered a New Era: Allison Schrager

Once upon a time, being a pension fund manager was a relatively straightforward job. The objective is simple: Invest the pension’s assets in such a way that its beneficiaries will be paid.

If you play it safe and the fund doesn’t generate sufficient returns, it will require more contributions, often from taxpayers. But if you take too much risk, it could also go wrong and leave the fund without enough money. The task requires balancing risk and reward.

OK, so maybe it was never easy — but as I said, the objective is clear and there are some simple truths that ...