A survey asked wealthy or "high net worth" investors

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Read's exit is a boost for clean tech
By Jonathan Shieber

The Wall Street Journal - April 29, 2008
(Copyright © 2008, Dow Jones & Company, Inc.)


Russell Read, chief investment officer for the California Public Employees' Retirement System, plans to launch his own clean-tech-focused private-equity fund.

"I am looking to start my own efforts," Mr. Read said in an interview. "It's still in the formative stages. It will take shape over the course of the coming months."

Last week, Calpers announced that Mr. Read intended to step down from his post June 30 to pursue his interest in environmental and clean-tech investing. Calpers is the nation's largest pension fund with assets of more than $244 billion.

Mr. Read said his fund, which hasn't set a target, will cover investments ranging from early stage deals to project-development-stage companies. His entry into the marketplace coincides with similar moves from a number of large private-equity firms and a redoubling of venture-capital fund raisings in the sector.

New York private-equity energy-investment firm Riverstone Holdings LLC has closed on $500 million for its targeted $4 billion alternative-energy fund, and Hudson Clean Energy Partners, of Teaneck, N.J., received a commitment of at least $300 million from Credit Suisse Group for its own $1 billion alternative-energy fund.

Lost Fund Faith?

Investors have lost faith in mutual funds, one survey suggests.

A survey asked wealthy or "high net worth" investors about their expectations for investments and the fund industry in general.

Most investors surveyed believe fund firms aren't meeting their expectations or putting their needs first.

Financial advisers, meanwhile, fare much better, ranking favorably with family doctors on the trust scale.

Barclays PLC's Barclays Global Investors commissioned the Cogent Research study. Barclays Global Investors is the largest participant in the exchange-traded-fund segment of the mutual-fund industry, with its iShares product line. ETFs account for about 5% of total fund assets.

The survey said about 71% of investors don't trust the fund industry. Some 66% said fund firms don't take responsibility to protect investors' financial well-being. Mutual funds are at the bottom of the list of trusted service providers. Investors' major sources of distrust: disclosure of fees, risks and tax implications.

One problem... Mutual Fund companies run most of the 401K programs for corporations. They make most of their money now from them and related retirement programs consisting of their funds. This set up will end shortly after congress votes to only taking money from individuals and not PACs and other special interest groups to fund their campaigns.

P.S. Skymaster, I hope you turn out to be right and I turn out to be wrong. I think the 401K is one of, if not the, biggest scams purpertrated by congress and corporate America in the 20th century. While they say it gives the worker more control over his money, it ties one hand behind his back in that many of these programs don't have precious metal, commodity or contrarian (bear) funds as the corps think this will leave them open to lawsuits by those who screw up with them. All you get is variations of Bull right down to money markets. I think a lot of people are going to find that "Buy and Hold" and the standard diversification of 10% cash, 30% bonds, 60% equity funds isn't going to be enough in the end for a middle classe retirement for those putting in 10% of a gross average income. Frankly, with the economy the way it is, what family of 4 could put away 10% of their gross every year on an average income?

Milk, thanks for your input. I am totally frustrated by my Wife's 401k which has total of Whopping 9 options of which one is Money Market Mine offers a lot 30+ but still I would prefer to be able to have access to ETFs. It might be better for me in the long run actually if they don't offer any tempting options. I have been in CASH for long time. Don't mind the 4-7% return. I really don't like to mess with my Retirement stuff. It would not be so bad for me if they did not force the 90 day restriction on the fund. I traded the Nasdaq Fund and got a notice that I would be barred from buying this fund in the future if I did it again without holding for 90 days. Dam, they want me to hold for 90 days so they can churn and burn my $$ in the fund. No Thanks

Milbank, many corporations match 100% the employee's contributions. Many of them also offer active rebalancing programs to maintain the proper equity vs bond ratio that most of the investors are hardly educated and disciplined to do it right. Not only they are offered free money, but also they are favorably rotated in between the bonds and equities when they would be most likely be willing to take additional risk. It is true that they don't invest in the commodities or inverse funds, but the idea there is the long term returns in these assets will be proportional to the equities and bonds, especially inverse funds are not recommended for the long term investors at all. If you want to micromanage it, you should simply get a financial advisor and open a brokerage account, but you will see that most of the actively managed non-professional accounts do not beat the S&P 500, in fact loose money without the help of a financial advisor since people are just not capable of keeping up for the long term...

Milbank, many corporations match 100% the employee's contributions. Many of them also offer active rebalancing programs to maintain the proper equity vs bond ratio that most of the investors are hardly educated and disciplined to do it right. Not only they are offered free money, but also they are favorably rotated in between the bonds and equities when they would be most likely be willing to take additional risk. It is true that they don't invest in the commodities or inverse funds, but the idea there is the long term returns in these assets will be proportional to the equities and bonds, especially inverse funds are not recommended for the long term investors at all. If you want to micromanage it, you should simply get a financial advisor and open a brokerage account, but you will see that most of the actively managed non-professional accounts do not beat the S&P 500, in fact loose money without the help of a financial advisor since people are just not capable of keeping up for the long term...

While I do not favor the limits on 401k it is probably a good thing for those that would turn it into a churning account.