CalPERS is the California Public Employee's Retirement System and my local paper had an editorial the other day on the dismal returns they earned last year-- 1.1%. The letter to the editor below appeared in today's paper. I wonder if this guy is a Boglehead?
EDITOR: I earned 4.8 percent on my investments in Vanguard mutual funds from July 1, 2011 to June 30, 2012. I understand that CalPERS paid $1.2 billion for advice that produced a 1 percent return over the same period. I am willing to share my secrets with Cal-PERS for only $1 billion. Simply add this amount to my CalPERS retirement account. Although I am not a licensed financial adviser, my credentials include working as a rocket scientist on the Gemini and Lunar Excursion Module projects in the early 1960s.
Professor emeritus, Sonoma State University
http://www.pressdemocrat.com/article/20 ... ent-advice
Also today, the paper published this opinion piece by the deputy executive officer for external affairs at CalPERS.
"Your Wednesday editorial ("CalPERS must be held accountable") demonstrates a severe misunderstanding of CalPERS' pension fund investment strategy, and mischaracterizes how a single-year return will actually impact public agencies.
Allow me to set the record straight.
First off, CalPERS is a long-term investor. This concept is either ignored or misinterpreted by the media on a regular basis and is the greatest source of misunderstanding and misinformation there is."
To read more:
http://www.pressdemocrat.com/article/20 ... erformance