Torsella follows up on promise to fight Wall Street fees to protect taxpayers
Harrisburg, PA – In a move that follows through on his promise to fight for taxpayers by protecting their money, PA Treasurer Joe Torsella announced today that he will transition all of Treasury’s $2.4 billion public equity investment holdings to a passive investment strategy, saving an estimated $5 million per year in fees (approximately $195 million in total savings when compounded over twenty years.) Torsella said the move will reduce investment risk and improve return to taxpayers, by eliminating high management fees paid to outside firms that frequently underperform the market. The move also takes another step toward changing the pay to play culture that has plagued the Commonwealth for decades.
“I took an oath to put the public’s interests first, not Wall Street’s. Study after study has shown that a passive investment approach for stocks, by dramatically reducing the costs to taxpayers, has a high likelihood of performing much better than a high-fee active investment approach over the long term.”Pennsylvania Treasurer, Joe Torsella