Subject: PENSION FUNDS' RISKY BETS DON'T PAY OFF
From: "Eric Schwerin" <[email-masked]>
To: "Hunter Biden" <[email-masked]>, "Arlene Busch" <[email-masked]>, "Joan Peugh" <[email-masked]>
Date: Mon, 2 Apr 2012 09:26:59 -0400

PENSION FUNDS' RISKY BETS DON'T PAY OFF - NYT's Julie Creswell on pg. A1: "Searching for higher returns to bridge looming shortfalls, public workers' pension funds across the country are increasingly turning to riskier investments in private equity, real estate and hedge funds. But while their fees have soared ... returns have not. In fact, a number of retirement systems that have stuck with more traditional investments in stocks and bonds have performed better in recent years ... Consider the contrast between the state retirement fund for Pennsylvania and the one for Georgia. The $26.3 billion Pennsylvania State Employees' Retirement System has more than 46 percent of its assets in riskier alternatives, including nearly 400 private equity, venture capital and real estate funds. The system paid about $1.35 billion in management fees in the last five years and reported a five-year annualized return of 3.6 percent. ... In Georgia, the $14.4 billion municipal retirement system, which is prohibited by state law from investing in alternative investments, has earned 5.3 percent annually over the same time frame and paid about $54 million total in fees." http://nyti.ms/H3ciNj

Eric D. Schwerin
Rosemont Seneca Partners, LLC
1010 Wisconsin Ave., NW
Suite 705
Washington, DC 20007
(202) 333-1880
[email-masked]
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