Posted on 04/13/2015 12:02:34 PM PDT by NRx
The Lenape tribe got a better deal on the sale of Manhattan island than New York City’s pension funds have been getting from Wall Street, according to a new analysis by the city comptroller’s office.
The analysis concluded that, over the past 10 years, the five pension funds have paid more than $2 billion in fees to money managers and have received virtually nothing in return, Comptroller Scott M. Stringer said in an interview on Wednesday.
“We asked a simple question: Are we getting value for the fees we’re paying to Wall Street?” Mr. Stringer said. “The answer, based on this 10-year analysis, is no.”
(Excerpt) Read more at mobile.nytimes.com ...
I thought that was what "money managers" did...
Kind of like what we get for the trillions of dollars we spend on “government”.
2 billion for doing no work. These guys are better than a government job!
Yes they have gotten something. The received substantial donations to Democrat candidates.
Ding! Ding! Ding!...what a racket.
They keep paying fees because they’re secret kickbacks. Or? Otherwise they could just invest in low cost funds like vanguard and many of fidelity s or American century’s. Follow the money and look for who leaves the state offices much much much richer than when they went in
I don’t believe this story is true. Given that it appears in the New York Times gives me additional reason to doubt it.
Or the New York Times is reporting flat out inaccurate "news". Did you consider that?
Obama’s been pee’ing on America’s leg telling them “the rain is warm today, isn’t it?” for almost 8 years now...
It’s getting a bit RIPE out there..
However; New Yorker’s LOVE the acrid stench and metallic trace of it..
Where “Stealing” is an art.. even good entertainment..
Where “break a leg” and “get a nose full” are idioms..
This comes from Bill de Blasio..who HATES Wall Street, and who just refused to endorse Hillary, because she and Bill are too close to Wall Street
What do you expect from criminals?
In this case it’s unlikely. I know enough about how Wall Street hucksters operate that this has a very clear ring of truth to it.
Building the case for the Theresa Ghilarducci proposal to nationalize all pension plans, as traders on Wall Street are too greedy and corrupt to be trusted with your retirement. If this is in the news then they are getting closer to pulling the trigger on it.
“This comes from Bill de Blasio..who HATES Wall Street, and who just refused to endorse Hillary, because she and Bill are too close to Wall Street “
Further proof that even a stopped clock is right twice a day.
I would love to see the Big Wall Street Firms start moving out of NYC.
Maybe these pensions can find some nice mortgage based derivatives to invest in.
Or some Greek bonds - http://www.zerohedge.com/news/2015-02-03/chelsea-clintons-husband-suffers-massive-hedge-fund-loss-greek-investment
They are already leaving; many have sent jobs overseas, and the post-9/11 backup site requirements (which need to be a certain distance from NYC) supposedly caused many to simply move the jobs altogether. As I understand it, most of NJ is too close, so southeast PA is getting the jobs. A lot ofthe original Occupy Wall Street protesters were laid-off employees of the financial district.
Friends that work in the financial district decribe companies keeping small staffs in NYC and a PO box. When Christie was attacked for stopping construction of a third tunnel connecting NJ to NYC, his critics were reduced to complaining that people who wanted to see Broadway shows might be inconvenienced; it wasn’t even about the mass of commuters that used to fill lower Manhattan every day. Those same friends say there are a lot less people going into NYC each day...
Any fund will have transaction costs, and even index funds need trades to keep them in line with indices.
We always use the net return (net of fees) when evaluating managers.
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