George Ross Goobey, Revolutionising Pension Fund Investment, 1947–1960

Nigel Edward Morecroft

Chapter 8 in The Origins of Asset Management from 1700 to 1960, 2017, pp 269-308 from Palgrave Macmillan

Abstract: Abstract Ross Goobey transformed investment thinking about the relative valuation of asset classes, maximising returns, time horizons and volatility, so his investment ideas were applicable to many long-term investors. He understood that in inflationary periods real assets such as equities (and property) were more useful investments than bonds and should yield less than bonds owing to their growth potential, the ‘reverse yield gap’. He challenged actuarial thinking, persuaded defined benefit pension funds with positive cash flow to invest into real assets and ushered in a golden age for pension funds. He had unusual ideas about diversification in order to capture themes such as high yield and small cap. Similar to Keynes, he argued against much orthodoxy of the time.

Keywords: Cash Flow; Pension Fund; Government Bond; Asset Management; Asset Allocation (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:pal:psitcp:978-3-319-51850-3_8

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DOI: 10.1007/978-3-319-51850-3_8

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