Tuesday, August 4, 2015

As stock market fluctuates, city moves to protect Pension Fund

Updated to better reflect latest figures:

As stock market fluctuates, city moves to protect Pension Fund


Updated to better reflect latest figures:

As the stock market continues to fluctuate wildly, board members for the city pension fund today voted to liquidate a small portion of the $3.8 billion fund in an effort to protect against future losses.

At a special meeting today, the pension board today voted to move money from two recently terminated equity managers to a strategic fund that will be managed in-house. It could be held in cash, or invested, said the fund's Chief Investment Officer Sumit Handa. The rough amount of the new strategic fund discussed at the meeting was $50 million, but according to the pension board, the funds being cashed out most recently had a combined $40 million in holdings.

City Finance Director Rob Dubow said he thought this was the right move.

"I think it's prudent. Given the size of the fund, it's not a big percent of the fund," Dubow said. "It does give us a chance to counteract a little bit of what's going on in the market."

As of Friday, the fund had lost $125 million or 3.5 percent of its value in the latest decline, said Dubow, who stressed that the market remains volatile. The loss thus far is substantially less than the 20 percent loss in 2008 when the real-estate bubble burst, sinking the stock market.

In 2008, the city was forced to put more money in the pension fund and cut dollars for the Fire Department, libraries and pools.

We encourage respectful comments but reserve the right to delete anything that doesn't contribute to an engaging dialogue.
Help us moderate this thread by flagging comments that violate our guidelines.

Comment policy:

Philly.com comments are intended to be civil, friendly conversations. Please treat other participants with respect and in a way that you would want to be treated. You are responsible for what you say. And please, stay on topic. If you see an objectionable post, please report it to us using the "Report Abuse" option.

Please note that comments are monitored by Philly.com staff. We reserve the right at all times to remove any information or materials that are unlawful, threatening, abusive, libelous, defamatory, obscene, vulgar, pornographic, profane, indecent or otherwise objectionable. Personal attacks, especially on other participants, are not permitted. We reserve the right to permanently block any user who violates these terms and conditions.

Additionally comments that are long, have multiple paragraph breaks, include code, or include hyperlinks may not be posted.

Read 0 comments
comments powered by Disqus
About this blog
William Bender, a Drexel graduate who landed at the Daily News in 2007, has covered everything from South Philly mobsters to doomsday hucksters. He occasionally writes about local food trucks and always eats everything on his plate, whether it be a bloody rib eye or a corrupt politician. E-mail tips to benderw@phillynews.com
 Follow William on Twitter

David Gambacorta, has been a reporter with the Daily News since 2005, covering crime, police corruption and all of the other bizarre things that happen in Philadelphia. Now he’s covering the 2015 mayor’s race, because he enjoys a good circus just as much as the next guy. He’s always looking to get a cup of coffee. Send news tips and other musings on life to gambacd@phillynews.com
 Follow David on Twitter

PhillyClout Team
Also on Philly.com
letter icon Newsletter