Step 5: Manager Pickers
charted based on either a June 30th or December 31st year-end date. The data shows that in the 26-year study, only 2 states (South Dakota and Delaware) matched the index portfolios, and not one of them outperformed in any of the time periods analyzed. For data sources, go to pension-gate.com. Directors of these pension plans have access to so-called â€œtopâ€? money managers, which would lead one to believe that these plans fired their very best shots at earning abovebenchmark returns, only to fall short. This analysis reveals that the widely implemented and costly process of hiring and firing of investment managers for state pension plans has delivered a negative payout relative to a risk-appropriate set of index benchmarks.
Published on Jun 1, 2015
This book reveals the potential land mines and pitfalls of active investing and educates readers on the benefits of passive investing with i...