FYI: In the hierarchy of institutional investors, pension plans get picked on the most. Endowments and foundations are the mean girls of this space, generally looking down at their pension brethren because they all assume pensions are the last to the party when it comes to innovative investment ideas.
In my experience, this is often unwarranted because I’ve witnessed plenty of silly mistakes from the E&F crowd, but I’ve spilled my fair share of ink on problems in the pension world (see here, here, and here).
So it’s only fair to point out a pension that seems to be on the right track. The San Bernadino County Employees’ Retirement Association (SBCERA) made a decision in 2006 to change the way they rebalance their portfolio and it’s added nearly $1 billion to their $10 billion fund since it was implemented. They estimate that’s an increase in annual returns of around 1.25%.
Regards,
Ted
https://awealthofcommonsense.com/2019/05/4-overlooked-investment-decisions/
