In your July 19 issue of P&I Daily, the article dealing with the Arizona Public Safety Personnel Retirement System focused in part on fees paid to a PSPRS property manager, the Desert Troon Cos., which is managing a large portfolio of residential, commercial and retail properties that PSPRS invested in years ago. The article states that “generally, the higher the valuation (for the properties), the higher the money manager's fee.” This statement is not correct.
PSPRS' real estate consulting firm, ORG Portfolio Management, having recently completed an independent review of fees paid to DTC during fiscal year 2012 under its contract with PSPRS, reported that “DTC earns fees for various activities (e.g., including asset management, property management, development, incentive performance and dispositions). None of these fees are based on (property) valuations.”
JAMES M. HACKING
Arizona Public Safety Personnel