Chicago’s police pension fund has joined the investor exodus from Fisher Investments following its founder’s allegedly crude remarks at a conference last month, according to news reports.
The $2.6 billion Policemen’s Annuity and Benefit Fund of Chicago, which represents about 27,000 current and retired employees and beneficiaries, has opted to withdraw around $67 million it had parked at Ken Fisher’s firm, Bloomberg writes, citing an email. This follows last month’s announcement that the pension fund placed Fisher Investments on a watch list, after the organization deemed that Fisher’s remarks were “inconsistent with the core values and benefits of the fund and its board of trustees,” according to the news service.
The Bureau of Investments of Michigan’s Department of Treasury was the first to pull out of Fisher’s firm, withdrawing around $600 million, after Fisher allegedly made references to convicted sex offender Jeffrey Epstein and drug use and compared luring new clients to “trying to get into a girl’s pants” at the Tiburon CEO Summit in early October. Michigan’s move was followed in quick succession by Philadelphia’s board of pensions, the Iowa Public Employees’ Retirement System, the City of Boston, New Hampshire, Fidelity Investments, the Employees Retirement System of Texas and Goldman Sachs. In all, pension funds and other entities have pulled around $3.9 billion from Fisher’s firm, Bloomberg writes.
But that’s a small dent in Fisher’s assets under management: the firm oversaw $115 billion as of the end of October. Moreover, retail investors were far less concerned over Fisher’s remarks, withdrawing just $20 million, as was revealed in a conference call between Fisher executives and Mercer held Oct. 14.