From the summary:
In this report, the Maryland Public Policy Institute and the Maryland Tax Education Foundation examine the investment fees and investment performance of Maryland’s state pension fund. We compare and contrast these items to those of other state pension funds. A similar report was prepared in 2012.
State pension funds, including Maryland, have succumbed for years to a popular Wall Street sales pitch: “active money management beats the market.” As a result, almost all state pension funds use outside managers to select, buy and sell investments for the pension funds for a fee. The actual result — a typical Wall Street manager underperforms relative to passive indexing — is costly to both taxpayers and public sector employees.
Wall Street Management Fees PR
Exhibit A. Pension Fees All Data
Exhibit B. Pension Fees All Data Largest 35 State Funds.June 30| 2012
Exhibit C. Inv Exp| Fees|Rate of Return| 35 States End 063012
Exhibit D. Top Bottom Ten States by Fees
Exhibit E. ROR of Composite Index Portfolio
For Pension Funds, Higher Fees Don’t Mean Higher Returns, Study Finds