Well, here is a bit of stupidity in pension fund management

That would be NYC, wholly owned subsidiary of the New York Banks.

via the New York Times (emphasis mine):

...over the past 10 years, the five pension funds have paid more than $2 billion in fees to money managers and have received virtually nothing in return…

Until now, Mr. Stringer said, the pension funds have reported the performance of many of their investments before taking the fees paid to money managers into account. After factoring in those fees, his staff found that they had dragged the overall returns $2.5 billion below expectations over the last 10 years.

Over the last 10 years, the return on those “public asset classes” has surpassed expectations by more than $2 billion, according to the comptroller’s analysis. But nearly all of that extra gain — about 97 percent — has been eaten up by management fees, leaving just $40 million for the retirees, it found.

Read more: http://thereformedbroker.com/2015/04/09/nyc-pension-earns-40-million-over-10-years-pays-fund-managers-2-billion/#ixzz3WqCAj2gw