Maintaining Our Discipline

Maintaining Our Discipline

At Pension Fund, we market ourselves as providing a Strong, Smart, and Secure retirement. We assume the burden of market risk with our products, so our members do not experience a loss in account value and continue earning a base rate of interest with the possibility of Good Experience Credits (GECs). This approach has been our hallmark since the inception of our first retirement product in 1932 and continues today.

In the fall, we fielded questions from members about “Why are there low or no GECs?” Part of our disciplined investment strategy involves not chasing market sectors while maintaining a balanced portfolio so as not to overexpose ourselves to a select number of “hot stocks” or sectors. As a result, we do not run up as fast or fall as far.

Those who were overexposed to the Magnificent Seven stocks in recent years are now experiencing significant valuation corrections. While we certainly feel the movement and market decline, we are not experiencing extreme volatility. We invest your retirement dollars for the long haul, maintaining discipline in good times and turbulent times while looking for opportunities to add value to our long-term investment holdings.

The market decline and volatility we are experiencing are 100% self-inflicted. In January 2025, the fundamentals of our economy were solid. We saw solid growth in our gross domestic product (GDP), low unemployment, and consistent job growth. The economy was on stable ground.

Two months later, confusing tariffs resulting in trade wars with some of our closest allies and statements like “We may have to feel the pain.” or “I do not care if we enter a recession” have resulted in a market that is uncertain. The market has a strong dislike for uncertainty! The volatility we are seeing is directly tied to the current state of policies led by the Executive branch. At the same time, I would be remiss if I did not mention that some sectors, like steel and aluminum producers, are pleased with the tariffs and gearing up to increase domestic production.

All this is to say, Pension Fund is buckled up for a volatile road ahead and holding true to what has carried us through crises such as the Great Depression, the Stagflation of the 70s, the Dot-Com bubble of 2001, the housing crisis of 2007 and 2008, the COVID-19 pandemic in 2020, and more that will undoubtedly continue to be thrown our way in the decades ahead. We are with you, holding true, and providing you with a Strong, Smart, and Secure retirement.