Monk: Pennsylvania pension board misunderstood portfolio complexity, hurting risk-adjusted returns
Ashby Monk · Ashby Monk – Innovation in Institutional Portfolios (Capital Allocators, EP.196) · May 24, 2021 · at 52:22
Dr. Ashby Monk recounts the findings of his public commission report analyzing the governance and performance of Pennsylvania's state pension system.
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“And when we got done with all of the analysis on a risk adjusted basis, It was much worse than I thought. And then there was a sense for me that this was a governance challenge and that because the board struggled to understand the complexity of the portfolio that was being built by the team, that the team could get ahead of the board in terms of its investing.”
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