FYI: The troubles hammering developing economies are reverberating as far as Tennessee, where the state’s retirement system is the biggest shareholder of a dozen exchange-traded funds that buy stocks in those markets.
The rout has exposed the difficulties facing U.S. public pensions, many of which have embraced riskier assets in recent years hoping to boost returns.
The Tennessee Consolidated Retirement System, which manages $50 billion in pension assets for the state’s public employees, has almost $2 billion invested in ETFs devoted to some of the hardest-hit markets such as South Africa, Indonesia and Turkey. Those investments have lost $243 million since the start of the year, according to FactSet.
Regards,
Ted
https://www.wsj.com/articles/emerging-market-tremors-rattle-tennessees-public-pensions-1536408000?mod=nwsrl_etfs&cx_refModule=nwsrl
