Submitted by Bob Buerkle
April 23, 2021
For the past decade Dean Dennis and I, as well as others, have been recommending that STRS should invest 70-75% of their portfolios mainly in stock, like they used to. In the first two paragraphs of this article about the Pennsylvania SERS Pension Plan there is commentary that a similar outcome would have resulted for them if they had done this instead of investing in high-cost Private Equity and Alternative Investments. The link to the entire article is included below. Bob Buerkle
From the Philadelphia Inquirer:
PSERS’s pension reversal has former allies questioning its strategy
Published Apr 22, 2021
Had the fund invested more in stocks as it used to, it would have made up its shortfall and prevented the extra charges, records show. Instead, the $64 billion fund invested in high-cost private equity and alternative investments that drove down PSERS’s performance numbers, triggering a need to require more contributions from recently hired school employees.
Read the rest of the article here.
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