PHILADELPHIA (CBS) –– The proceeds of more than $40 million in stocks sold off last week by the city’s pension fund, when the global markets were in chaos, is now being reinvested.
The sell-off last week by the municipal pension fund amounted to $43 million — still a very small part of a fund that is valued at over $3 billion (see previous story).
Now, with the global markets seemingly calmed down, the pension board has given the fund’s staff the okay to reinvest that money.
City finance director Rob Dubow, who sits on the pension board, says the staff will handle those investments itself rather than in its normal fashion of using a private fund manager.
“Fund managers have certain kind of restrictions in how they can invest,” Dubow explains. “Staff will have a certain kind of flexibility and be able to move more quickly when things happen like what happened in the market last week.”
Dubow says he’s relieved that the markets are stabilizing and that the pension fund has recaptured much of the value it lost last week.
Reported by KYW City Hall bureau chief Mike Dunn