No. of Recommendations: 4
My guess is that the pension rules were made at a time when holding non-yielding assets, such as cash or gold, were considered riskier than government bonds

Gold is riskier than most government bonds. Cash can be risky as well. How would the pension fund hold cash? Some governments, for example Switzerland, are essentially charging a fee for providing a government guarantee.

Many pension funds are planning on 7% returns, and so anything less is painful.

10-Year Government Bond Yields

    Country     Yield
Switzerland -0.66%
Germany -0.33%
Netherlands -0.21%
Japan -0.14%
France -0.07%
Spain 0.38%
Portugal 0.44%
United Kingdom 0.73%
Australia 1.35%
Hong Kong 1.35%
South Korea 1.45%
Canada 1.49%
New Zealand 1.56%
Italy 1.60%
Singapore 1.92%
United States 2.04%
Greece 2.12%
India 6.35%
Brazil 7.27%
Mexico 7.49%
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