Alternative Investment impact on pensions

A new report, How Hidden Costs Undermine Public Pensions in the US, by Richard Ennis posits that “increased allocations to nontraditional investment products and fund-level underperformance relative to common actuarial benchmarks caused by these products’ higher costs.” A review of study of 54 prominent public plans’ portfolio data shows the pensions doubled their exposure to alternative investments from 2008 to 2023, to 34%.

Governing | How ‘Alternative Investments’ Are Dragging Down Pension Performance