The Canada Pension Plan (don’t yawn yet) has put many a hedge fund, and even the sizzling S&P 500 index fund, to shame. This podcast (5:43) argues that if management remains as astute, and even more importantly, as diversified, then the CPP could continue to do very well. However, while earning high returns helps secure the Canadian retirement system, the fund’s management should focus on “beating” U.S. Social Security, not the S&P 500. The goal should be solvency, not hedge-fund-like performance.
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