Should Pension Funds invest in Private Equity?
Quick excerpt from an article I found:
"US job growth is a meager 74000 in December" We all know the fed will continue to taper and keep interest rates low until unemployment reaches below 6.5% or so they say. I believe if the U.S. government and pension funds as a whole fixed a few loopholes, we could see significant job growth. My first proposition is to force all pension fund managers inform their blue collar investors if they are supporting funds that actually stagnate job growth (dividend recapitalizations).
First, starting at the root, blue collar workers, such as California Teachers, choose to dedicate part of their salaries for retirement. They put their savings in CalSTRS, which is now $155bn in AUM. The teachers obviously want their investments to grow at a stable rate, say 10%. I do believe these teachers expect the investments to grow not at the expense of the economy and other blue collar workers. For example, Dan Loeb was in a predicament with pension funds, as he was against defined benefit plans. Thus, I believe these pension fund managers need to inform their investors that some of their funds are invested in private equity funds that depend on dividend recapitalizations for returns."
Why not? Your government does it with your tax payer money without your approval.
When you shop at Walmart do you always use the line with a cashier? Or are you in favor of job losses with opportunities for higher earnings and use the self checkout isle?
Yeah, you gotta have that ideal asset allocation for nice returns
LOL @ the idea that PE firms "stagnate job growth" and that people who already have pensions would be concerned about "job growth" in the first place.
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