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The City of San Jose’s 2014 Annual Comprehensive Financial Report (CAFR) reveals:
A $5.4 billion Pension Trust Fund (pg. 194) that generated $105 million income from interest and dividends (pg. 195), and pays advisors $24.4 million for investment expenses (pg. 195).
A comprehensive financial strategy of purchasing debt securities to earn interest ($58.6 million, page 195), and selling debt securities that cost interest ($98.4 million, page 201).
Therefore, this financial strategy involving a $5.4 billion pension fund cost $17 million to taxpayers and retirees (income minus interest and investment expenses) while paying the advisors to manage these “investments” $24 million.
And it might be worse than this because the CAFR is not transparent with how much debt securities cost taxpayers:
Page 201 states a $98 million interest cost, but page 85 has total interest cost for the fiscal year ending June 30, 2015 as $135 million.