Not unlike the moment of clarity many 401(k) participants will soon discover as their fees – and the occasional shortcoming – of their investment accounts are laid out in full detail, many public pension plans are also learning that their own investments in risky prospects don't always yield the safe returns that were hoped for.
In a recent New York Times article, it seems that public workers' funds that have made significant investments in private equity, real estate and hedge funds have not quite produced the anticipated results … other than increased fees.
The contrasts can be quite stark, as the story explains. The risk-taking Pennsylvania State Employees' Retirement System, valued at $26.3 billion, placed almost half of its assets in private equity and venture capital funds.
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