Firefighters’ pension returns may come up short

The Firefighters’ Retirement System of Louisiana has indicated for the first time that it’s preparing for the possibility of a shortfall in its investments with Fletcher Asset Management, which had offered it a 12% minimum annual return. Citing monthly investment reports, The Wall Street Journal reports the pension fund in November lowered the market value of its $57 million investment with the controversial fund manager by around $10 million, or more than 17%. The change came in the form of a $10 million “reserve” the fund is now setting aside for the possibility it won’t fully collect on booked profits, Steven Stockstill, the executive director of the firefighters’ pension fund, tells the newspaper. The move was based on the “conservative advice” of the Louisiana fund’s accountants and auditor, Stockstill said. Their main concern, he said, was that the Louisiana fund still hasn’t received audited 2009 and 2010 financial statements from the Fletcher fund holding its investment. A spokesman for Fletcher didn’t respond to requests for comment. State Legislative Auditor Daryl Purpera says he is planning to release a report in about a month examining the investment practices and procedures of some public pension systems in the state. Read the full story here.