October 13, 2005


Sir, With respect to Company X’s pension woes you inform that the company recorded a return of 5 per cent in the first half of the year, putting it on track for its assumed annual return of 9%, but, that if X’s pension funds produced the same poor returns as equity and bond markets this would of course have a dramatic negative impact. What is thereby implied makes a case for developing a formula that calculates how much arrogance a X and so many others must need in order to put forward an assurance of being able to earn 9% on funds over a lifespan, and/or that it will continuously be able to beat the market.