•  
• Tweet
•  
•        Print
•  
•         Track Keywords
•  
• 

Komfie Manalo, Opalesque Asia:

Pennsylvania Treasurer Joe Torsella said he would transition all of the Treasury's $2.4bn public equity investment holdings to a passive investment strategy in a move that follows through on his promise to fight for taxpayers by protecting their money.

The move is seen to save an estimated $5m per year in fees (approximately $195 million in total savings when compounded over twenty years.) Torsella said the move will reduce investment risk and improve return to taxpayers, by eliminating high management fees paid to outside firms that frequently underperform the market. The move also takes another step toward changing the pay to play culture that has plagued the Commonwealth for decades.

"I took an oath to put the public's interests first, not Wall Street's," Torsella said in a statement. "Study after study has shown that a passive investment approach for stocks, by dramatically reducing the costs to taxpayers, has a high likelihood of performing much better than a high-fee active investment approach over the long term."

Torsella directed Treasury's investment team to transition all public stock holdings to passive strategies over the next six months, joining growing numbers of investors embracing passive investing as smarter fiduciary management. Approximately $1bn......................

To view our full article Click here