Liquidity and transparency
Can someone please go find out what specific assets the city's pension fund is holding that are considered illiquid?... and what is a much more interesting question.. i.e. What basis is being used to price them at in terms of calculating their current value? Purchase price? There is a knot forming in my gut. For the state PMRS fellow to mention it, and for the city to have the actuary send a letter out on the subject, both imply to me that the scale is not minimal in terms of what $$ are tied up in whatever it is.
Don't get me wrong, there are all sorts of funds investing in things not quite liquid. Some investors prefer that type of risk. Whether that risk is appropriate to the fund that is now driving the entire policy discourse in the city of Pittsburgh is something we can debate. Even pension funds are investing in liquid assets more and more, but normally a pension fund diving into such types of investment are doing pretty well and they are doing this with money they may not need anytime soon. Remember the Alabama pension fund manager who was briefly the owner of US Airways.