My concern given the CIO article is whether KRS is investing in ONLY the 5% of hedge funds identified in the article ???
KRS position on investment in private equities and hedge funds is outlined in the following excerpt from a presentation by RVK consultants to the KY Public Pension Oversight Board at the Jan 25, 2016 meeting.Discussion pertains to CERS and KERS haz only.
A pro-hedge fund article from Chief Investment Officer follows.
Information provided by saveCERS.org is for educational purposes only and is not investment or legal advice.
Given the situation outlined in this website, the editor of saveCERS.org has filed a civil action in the Franklin Circuit Court case # 15CI-952. Since the case is pending no comment will be made about the action. Court filings on the case, which are public, will be posted on this page. You are encouraged to return to this page to review the progress of the case.
Other civil actions filed in Franklin Circuit Court over hedge funds & pensions
...it ought to be against the law
Why is it important for CERS to get out of alternative investments, including private equities and hedge funds? Because it is too %&#! expensive to invest in them. Fees charged to make these investments are not consistent with their unpredictable rate of return. Review these links for information about this situation. KRS chief investment officer, who has left KRS, classified these articles as nonsense. Judge for yourself.
As previously discussed in About section the impetus behind this website was a civil action filed by the City of Fort Wright over investment practices by Kentucky Retirement Systems. Specifically, the cost of fees paid for alternative investments..
Just how much KRS has spent for investment expenses for private equity over the past several years is unknown. The following memo their Chief Operations Officer sent to the Director on Internal Audits sheds some light on the situation. Memo is from KRS website. The red star and underline were added to emphasize private equity expenses. The red bracketed amounts are loses by each pension fund.