Skip to comments.
State Funds Firing Wall Street Managers
Reuters / CNN Money ^
| January 15, 2003
Posted on 01/16/2003 7:01:53 PM PST by Cicero
Edited on 04/29/2004 2:01:57 AM PDT by Jim Robinson.
Asset managers getting booted for poor public pension fund performance.
NEW YORK (Reuters) - U.S. state pension fund managers have decided to cut their ties with Wall Street asset managers whom they blame for allowing already-bad stock market losses to grow even bigger.
(Excerpt) Read more at money.cnn.com ...
TOPICS: Business/Economy; Government
KEYWORDS: bananarepublics; pensionfunds
The rats are starting to turn on one another.
posted on 01/16/2003 7:01:53 PM PST
posted on 01/16/2003 7:02:49 PM PST
by Support Free Republic
(Your support keeps Free Republic going strong!)
To: rohry; Wyatt's Torch; arete; meyer; DarkWaters; STONEWALLS; TigerLikesRooster; Ken H; MrNatural; ...
public pension funds made the mistake of reducing employee contributions. Most public pension funds are now increasing the amount of money employers pay into the pension funds
Employers equals taxpayers meaning higher taxes.
Note, no mention of raising the reduced employee share.
posted on 01/16/2003 8:58:45 PM PST
(unhatched chickens for sale...all in one basket)
I never understood why these big pension funds don't just buy an S&P index, a bond index, and a little gold on a regular, cost averaged basis basis. Allocate it, say, 60% stocks, 30% bonds, and 10% gold.
That way you'd avoid a management fee, take advantage of the long term rewards of stocks, and have a nice hedge.
That's what I would do, anyway, with a big pension fund.
posted on 01/16/2003 9:45:04 PM PST
by Ken H
To: Ken H
60% stocks is too high for a working pension fund, IMHO. I think the pension managers got caught up in the "artificial exuberance" of the late 1990's, and it came back to bite them (and the taxpayers). What's apparent to them now is that it "isn't different" this time.
posted on 01/17/2003 6:20:01 AM PST
Opinions posted on Free Republic are those of the individual
posters and do not necessarily represent the opinion of Free Republic or its
management. All materials posted herein are protected by copyright law and the
exemption for fair use of copyrighted works.
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson