Pew Charitable Trusts reports state pension funds, including Oregon's PERS, are making riskier ... [View all]

Pew Charitable Trusts reports state pension funds, including Oregon's PERS, are making riskier investments

Going hog wild into exotic investments such as hedge funds, private equity and real estate might not be the best idea for state pension plans, according to a Pew Charitable Trusts report released Wednesday.

High management costs and unpredictability should make pension fund managers wary, the report said. The effectiveness of these higher-cost strategies remains uncertain, according to the Pew report.

“The funds with recent and rapid entries into alternative markets — including significant allocations to hedge funds — reported the weakest 10-year returns,” the authors said.

More than 25 percent of state plan assets nationally are invested in alternatives, and that's more than double the amount a decade ago.

Read more: http://www.statesmanjournal.com/story/news/politics/state-workers/2017/04/12/pew-charitable-trusts-reports-state-pension-funds-including-pers-making-riskier-investments/100381708/