FYI: It seems logical to believe that if anyone could beat the market, it would be the pension plans of large U.S. companies.
Given the large sums they control, they have access to the best and brightest portfolio managers—managers most individuals don’t have access to because they cannot meet required minimums.
It’s not even remotely possible they ever hired a manager with a record of underperformance.
The vast majority of pension plans hire professional consultants to help them perform due diligence in interviewing, screening and ultimately selecting the very best. You can be sure these consultants have thought of every conceivable screen: management tenure, depth of staff, consistency of performance, performance in bear markets, consistency of implementation of strategy, turnover, costs and so on.
The fees they pay are much lower than fees individuals pay.
Pension Fund Performance Research
Despite these advantages, the research shows pension plans do not outperform appropriate risk-adjusted benchmarks. We’ll examine the findings from four studies.
Regards,
Ted
https://www.etf.com/sections/index-investor-corner/swedroe-pension-plans-consultants?nopaging=1
