Overview
- Warshaw released a report on Dec. 22 alleging that reliance on active managers cost the $291 billion Common Retirement Fund roughly $59.1 billion versus a low-cost index approach.
- The paper estimates the fund paid about $11.3 billion in fees to hundreds of investment managers over 18 years.
- Warshaw says the analysis was prepared using the fund’s annual financial reports and done in consultation with Stanford economist Ryan Cummings.
- DiNapoli’s team defends a diversified portfolio, disputes the calculations, and says the pension is virtually fully funded.
- Warshaw, who reports raising more than $1 million for his campaign, pledges to eliminate active mandates if elected as the Democratic primary field takes shape.