Atlanta Pension Panel Suggests Firing Subpar Managers
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The chairman of an Atlanta advisory panel looking for solutions to a $1.5 billion pension deficit said the city should consider firing its investment managers because returns don’t justify their cost.
Atlanta’s three pension funds, with assets of $1.9 billion, could potentially save $5 million a year in fees for active managers that buy and sell investments with the goal of outperforming an index, according to data compiled by the panel. Managers for Atlanta’s police and general employee funds have underperformed benchmarks, panel Chairman John Mellott said today during a meeting at city hall.