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October 31, 2002 - Richard Clayton

Shared views on MPT

   I discovered your website after reading your op-ed piece in Pensions and Investments, and I'm thrilled to have found someone who agrees with my views on MPT, especially its sleight of hand with the concept of risk. I am especially worried about the consequences of MPT inspired advice leading 401k- dependent workers (ie those with no employer funded DB plan) to adopt investment strategies that leave them far short of what they'll need for retirement.

   I'm a research analyst with the Service Employees International Union, and I work our Capital Stewardship Program, which focuses on the investment policies and practices of the pension funds (both public and Taft Hartley) where we have members. We're also very concerned about efforts over the last few years to convert public DB plans to DC systems.

   Anyway, I think your work is excellent, and I look forward to more in the future.

   Richard Clayton



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