Joseph DiStefano of The Inquirer writes about the success of Montgomery County’s new pension fund investment strategy since its implementation one year ago:
Montco’s returns for the year ended June 30, after paying fees: 16.23%.
Vs. the fund’s “portfolio specific market benchmark,” which returned 15.9%.
That’s double the pension’s “actuarial earning assumption” target of 7.5% a year, thanks mostly to the bull market in stocks.
Here’s the breakdown between the 90% of Montco pension investments indexed by Vanguard and the 10% managed by SEI:
Vanguard stocks and bonds: 16.4%; which beats the fund’s benchmark target of 16.04%.
SEI alternative investments: 16.23%; vs. benchmark 15.9%.
Montco reports a reduction in money management fees from 44 basis points (0.0044%, about $2.1 million) to a little under 18 basis points (0.0018%, approx. $880,000). Which Shapiro figures is like a savings of $1.2 million.
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