Firm Employing Former State Treasurer Richard Moore Collected High Management Fees

Relational Investors’ fees about five times greater than comparable pension managers

RALEIGH (By Sarah Okeson; Carolina Journal Online) — The San Diego firm that received $500 million in state pension investments from former state Treasurer Richard Moore — and that later hired Moore — collected a higher share of management fees last year than the other 25 companies that make stock investments for the pension.

North Carolina paid Relational Investors about $6.6 million last year — or 1.26 percent of the $525.7 million that the Teachers' and State Employees’ Retirement System has invested with the company. That’s about five times the percentage that the average company got for managing stock investments from North Carolina’s pension fund.

Moore, the state treasurer for eight years, invested pension funds in Relational Investors in August 2008, about three months after he lost the Democratic gubernatorial primary to Bev Perdue. In April 2009, Moore went to work for Relational as a managing director.

Moore has not returned repeated calls from 'Carolina Journal' seeking comment.