I spy with my Illinois eye.

Downstate here

Missing returns?

We’re down to the last days of 2017 and it doesn’t look like we will get the Annual Report from the Illinois State Board of Investments for the calendar year ending 6/30/17.

Remember Illinois Policy Institute’s Marc Levine is now the Chairman of the board that directs billions of investment dollars on behalf of State Employees, the General Assembly and Judges.     Marc Levine is from the same New Trier Township as Mark Kirk and Governor Rauner and was even the New Trier Township Republican Chairman until recently.    One of Governor Rauner’s first appointments after he took office was to appoint Illinois Policy Institute’s Marc Levine to the Illinois State Board of Investments.

Questions have to be asked like-  How are those returns doing now that you doubled the amount that was going to be invested in private equity?

You claimed that fees would drop considerably by ending some investments in hedge funds.    Hedge fund fees are similar to Private Equity fees.    So dropping in 1/2 the amount invested in hedge funds would lower fees if you didn’t correspondingly DOUBLE the amount invested in Private Equity funds.

Remember Governor Rauner made his money as a Private Equity manager on behalf of pension funds and other large investors.

However, your Private Equity fees will double and but just because we can’t see them  doesn’t mean they don’t exist.    How so ?  Private Equity deducts the fees FIRST before giving the returns to the State.   It’s now not a separate line item.

Why hide the fees paid to Private Equity?  Well for one thing, it might upset people to really see how much they’re spending to get into Private Equity deals that aren’t delivering the returns that could be obtained from a simple index fund.

 

 

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