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Nor can they count on equity in a small but growing operation.
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Many pension funds were counting on equities to keep rising, and notwithstanding dodgy accounting which, in the public sector, is hiding some of the holes are now in deficit as a result.
PARENTS of college-age children used to be able to count on home-equity loans to help pay tuition, but this is no longer the case with housing values sliding and the mortgage market imposing much tighter restrictions on loans.
A big drop in returns would be particularly vexing for pension funds, which are counting on private equity, hedge funds and other so-called alternative investments to help them meet their mounting liabilities.
He's expressed sympathy for employees who were counting on their equity.
Maybe the home equity loan they'd been counting on to cover tuition didn't go through.
Vanishing Act Don't count on the private equity gang.
According to Mercer, a consultancy, American pension funds had a deficit of $484 billion at the end of last year (up from $315 billion at end-2010), a funding ratio of just 75%.But executives seem to be counting on an equity-market rally to dig them out of the hole.
For some portfolio managers the return on equity counts a lot (it often reflects pricing power).
Everything above the rate would count as a nondeductible return on equity.
If you can't count on policy to support equity prices, you're left with book value, cash flow, and dividends.
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