We don’t read ai-CIO, but a member of S.C. Treasurer Curtis Loftis’ staff does … and blasted out a salient passage from its recent editions that references the Palmetto State’s struggling pension fund.
Said passage noted that “New York City and South Carolina’s retirement systems each shelled out just under half of a billion dollars to asset managers in the most recent fiscal year.”
Everybody following so far?
(It’s South Carolina … we have to ask).
Next, the publication noted that “New York City’s assets total $144 billion. South Carolina spends roughly the same on a $27 billion portfolio. Furthermore, in the 2013 fiscal year, New York City’s funds returned 12.12 percent and South Carolina’s gained a net 9.9 percent. The former has likewise outpaced its southern peer over three- and five- year performance periods.”
So in other words South Carolina is paying exactly what New York City is paying to manage a much smaller fund – and is getting a much crappier return.
The report goes on to note that fees in South Carolina “have jumped 33 percent from the last fiscal year.”
Obviously none of this is any secret to FITS readers … nor are the ongoing efforts by status quo defenders including Gov. Nikki Haley and S.C. Sen. Hugh Leatherman to perpetuate this incompetence (and keep Loftis from meddling in their affairs).
Seriously … monkeys are running this show (monkeys who give themselves fat taxpayer-funded bonuses for their poor performance).
Anyway, to read the ai-CIO article (which includes a pretty heated back and forth between Loftis and former S.C. Sen. Greg Ryberg), click on the link below …