Most U.S. state funds have asset allocation processes that are cumbersome, with money outsourced to numerous different managers; allocation decisions typically take between six and 18 months. Some funds are run by political appointees, rather than investment professionals. And even when asset managers are hired, salaries for most senior managers range between $100,000 to $200,000, much less than in the private world. That makes it hard to attract talent, let alone retain it. The result is that many state pension funds look like slow-moving, herbivorous dinosaurs.
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