PSPRS’ Real Estate Investments: Source Of So Many Problems

Excerpts from the PSPRS Pension Watch blog at (Thursday, Sept. 4, 2014)-

“For the fiscal year, PSPRS’ total fund earned 13.82%, gross of fees.  If we subtract 0.50% (last year’s amount) for fees paid to outside investment firms, we get an estimated annual return, net of fees, of 13.32%. ”

“Readers can look through the returns of all the different types of investments if they like, but it is more difficult to get a sense of their final performance because they all have different fees attached. ”

“The most glaring thing in the report is the real estate portfolio, which was the only category that lost money.  Real estate had a -0.62% return for the year versus a benchmark return of 11.21%.  PSPRS’ real estate investments are the source of so many problems, so I guess we should not be surprised that these investments are still causing problems.  If real estate investments had achieved a return of just half the benchmark, the PSPRS total fund would have met its benchmark for the fiscal year.”

View for the complete blog post


Tags: , , , , , , , , , , , , , , ,

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: