Newly elected Pennsylvania Governor Josh Shapiro has announced that he wants state pension funds to move away high priced and low performing Wall Street types.
Good.
High powered finance types are to pension funds as wolves are to a flock of sheep:
Pennsylvania Gov. Josh Shapiro wants to cut back on state pension funds’ reliance on outside investment contractors, who manage billions of dollars in public money while collecting lucrative state fees.
“We need to get rid of these risky investments. We need to move away from relying on Wall Street money managers,” Shapiro said Tuesday at a news conference, making some of his first remarks on the subject since he was elected.
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The formulas by which those fees are calculated are often secret, with paragraphs blocked out or pages excluded from publicly available contracts. Sen. Katie Muth (D., Montgomery), a PSERS trustee, has sued to make the full contracts public, so far without success.
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As chairman of the Montgomery County commissioners, Shapiro in 2013 persuaded colleagues to fire dozens of traditional pension managers and replace them with low-cost index funds.
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Shapiro told reporters Tuesday that he hopes to do for Pennsylvania what he did for Montgomery County when he headed county government in the early 2010s: “Fire the money managers, saving millions of dollars that’s going to their high fees.”
Hiring expensive managers to make risky bets with your pensions is a sucker bet.
Index funds outperform actively managed funds over the long haul, and they cost far less.
Of course, index funds don't have the cash to donate to political campaigns, which is why public pension still go for expensive Wall Street bullsh%$.
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