Magaziner Defends RI’s TIAA Investments While Controversy Grows
Thursday, November 02, 2017
A recent New York Times story has raised serious questions about financial giant TIAA — a company that RI has investments nearly $700 million. The Sunday feature by Business writer Gretchen Morgenson of the Times flagged that TIAA positions itself above all others, but those claims are now coming under fire.
“Calling itself a ‘mission-based organization’ with a ‘nonprofit heritage,’ TIAA has enjoyed a reputation as a selfless steward of its clients’ assets for almost a century," wrote Morgenson.
‘Our values make us a different kind of financial services organization, known for our integrity,’ Roger W. Ferguson Jr., TIAA’s president and chief executive, says on the company’s website,” wrote Morgenson.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTBut, as the NYT unveils, TIAA’s claims are being called into question as the company fails to disclose its fees and a number of lawsuits and whistleblower actions claim the company is pushing clients into products that generate high fees, but are inappropriate for those they have been targeted to.
Also of note in the NYT piece -- Morgenson said Edward "Ted" Siedle, Forbes columnist, Rhode Island pension critic, and the biggest whistleblower in SEC history, has been briefed on the situation.
Siedle said he had "no comment" when reached on Wednesday.
Magaziner on Record
Rhode Island General Treasurer Seth Magaziner defends Rhode Island’s investments with TIAA.
“Treasurer Magaziner is committed to ensuring that members of the retirement system have access to high-quality, low-cost investment options. When the New York Times article came out, the Treasurer directed his staff to reach out to TIAA, who stated that their employees who work on the Rhode Island plans are not compensated based on cross-selling TIAA products, and therefore the situation mentioned in the article does not apply to Rhode Island’s relationship with TIAA,” said Evan England, spokesperson for Magaziner.
The Treasurer has prided himself on shifting the retirement fund assets out of high fee hedge funds to equities. He has shifted more than $500 million out of hedge funds according to a recent appearance on GoLocal LIVE.
“The Treasurer is concerned about the New York Times report, and while it is welcome news that Rhode Island does not appear to be impacted, he will continue to monitor the situation closely and hold TIAA to the highest standard on behalf of the members of the retirement system,” said England.
“TIAA has been the state’s defined contribution provider since 2012 and a 457 provider since July 2017. There are five years remaining on both contracts. At end of fiscal year 2017 there were $692 million in assets,” he added.
Related Articles
- Should Rhode Island Divest from Hedge Funds?
- Hedge Fund in RI Portfolio Reports First Ever Loss
- Riley: Institutional Investor Gives Bad Grades to RI’s Hedge Fund Picks
- Hedge Fund Reports Censored - See the Redactions
- NEW: Fung Calls on Raimondo to Release Hedge Fund Research
- NEW: Fung Calls on Raimondo to Release Hedge Fund Research
- NEW: Siedle Blasts Raimondo for Withholding Hedge Fund Info
- NEW: Caprio Splits with Raimondo on Hedge Funds
- Raimondo’s Top Hedge Fund is Being Investigated by Feds
- Transparency Denied: New Treasurer Censors Hedge Fund Reports
- Former MIT Dean & Son Get 45 Months in Prison for Hedge Fund Scam
- Seth Magaziner on Pensions, Hedge Funds, and More
- RI Divests From 7 of Raimondo’s Hedge Funds, Including Och-Ziff Which Was Hit By SEC with $400M Fine
- Riley: Did Magaziner & Raimondo Invest in Vulture Hedge Funds?
- Magaziner Announces RI has Withdrawn $340 Million From Hedge Funds, Strategy Shift from Raimondo
- EDITORIAL: Raimondo’s Hedge Fund Problem
- Raimondo’s Preferred Hedge Fund is About to Plead Guilty to Federal Corruption Charges, Say Reports
- Siedle: FBI & SEC Should Investigate Raimondo & Magaziner’s Billion-Plus Losing Hedge Fund Gamble
- Riley: Puerto Rico Hedge Fund “Bailout” to Follow Rhode Island Law
- Riley: RI Treasurer & Hedge Fund Debacle – Worst Returns in a Decade
- Riley: Magaziner Drowning in Raimondo’s Hedge Funds Gone Wild
- Riley: Time to Ditch Hedge Fund Strategy
- Magaziner Announces RI Pension Fund Has Pulled Over $500M from Hedge Funds, Shift From Raimondo
