Howard Marks Says Institutional Returns at 5.5% a ‘Big Problem’
- Pension funding gaps widen amid forecasts for lower returns
- Schwarzman, Marks cite central banks’ easy money policies
Marks: We're Investing, but With Unusual Caution
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Institutions face returns that will be lower than historical gains and in some cases less than what they need to meet their liabilities, according to Oaktree Capital Group LLC’s Howard Marks.
Annualized gains of 5.5 percent “strikes me as the most reasonable expectation,” Marks said Wednesday at the Bloomberg Markets Most Influential Summit in New York. “It’s a big problem because most endowments need 8 percent, charities need 8 percent, and pension funds need about 7.5 percent.”