Two weeks I saw a post on allaboutalpha.com that listed the best corporate pension fund managers. It was written by Charles Skorina and compared their performance with the more visible public pension funds and endowments in the US and Canada. Looking at five year returns, the companies with the best returns are Boeing, NorthrupGrumman, Ford and AT&T. All were above 5.4% for 2007 - 2011. Harvard Management's return for the same period was 5.6%. A simple 60% equities / 40% bond portfolio would have returned 3.2%. The four corporations earned these returns with less risk - as measured by Sharpe ratios. The only public plans to rival them were Alberta Investment Management Company (AIMCO) and Columbia University. Harvard Management's Sharpe Ratio was well below the leading plans. Surprisingly enough, financial services firms Bank of America and General Electric ranked among the worst.
The source for this article can be accessed here.
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