Monday, August 15, 2016

Ron Elmer, who lost to Dan Blue in the primary for NC Treasurer without a News and Record endorsement for the race ; "Index Fund Returns Crush North Carolina Pension Returns (Again)"

"North Carolina Treasurer Janet Cowell recently released investment returns for the state pension fund.  The press release touted the returns as being slightly better than average over the past 5 years (45th percentile).  However, it is important to keep in mind that the NC pension fund fails to beat a simple mix of low-cost Vanguard index funds.

The City of Greensboro shafted their own employees
by doing the same stupid shit, which makes Wall Street money
by skimming off the assets

...Treasurer Cowell pointed out that the pension earned 8.5% annualized over the last 7 years - which approximates her tenure as North Carolina's Treasurer.  The simple Vanguard portfolio would have earned 11.2% over the same time period.  This difference of 2.7% per year for 7 years translates into $20 billion of lost returns during Treasurer Cowell's tenure.

Treasurer Cowell failed to do the right thing, 
and so far, so will Dan Blue, just like Tony Wilkins, 
Nancy Vaughan, Rick Lusk, Connie Hammond and Zack Matheny etc...

For a state whose annual budget is $22 billion, the expansion of alternative investments in the pension fund from nearly zero to over 25% has been a silent fiscal catastrophe."