Running HOOPPs Around the Competition?

Please read my latest entry and post your comments here:

http://pensionpulse.blogspot.com/2010/04/running-hoopps-around-competition.html

Thank you,

Leo Kolivakis

Comments

[exportbank]

Leo.. when you look at even good funds and they return 5% over the past 10-years - is there any need for management costs at all? You could have done 5% with a decent CD (over the last 10-years).

[Leo Kolivakis]

Look at the Brockhouse Cooper Balanced Index returns over the last 10 years:

http://www.brockhousecooper.com/en/documents/BCUniverses_Cdn.pdf

It is up 4.1%, so 5% is decent but not extraordinary.

[Augustus]

Calpers posts their investment returns and seems to be above 3% for the past ten years:

http://www.calpers.ca.gov/eip-docs/about/facts/investme.pdf

An important factor in the adequate reserves and funding is the Funding.  Sure, pesnion fund managers can be criticized for some choices.  However the under funding problem has an original source in that the various states, cities, and companies have not put the money into the pot but insist on paying out and promising ever increasing benefits.

[Leo Kolivakis]

CalPERS got whacked in 2008 and partially recovered in 2009 as stocks rallied. Very few funds can boast of coming out ahead in the last two years - only HOOPP and a handful of others can.