"State and local government employee retirement funds had total financial assets of $2.8 trillion at the end of 2011. This immense pool of capital is funded by employee contributions, employer contributions, and investment earnings. A majority of such funds is invested in the stocks and bonds of U.S. corporate issuers, with substantial investments also made in venture capital and private equity funds and other asset classes. These investments make public pension funds a significant source of capital for American business. Importantly, another benefit of pension fund capital is that pension funds typically invest with a long-term perspective. This 'patient capital' is essential for true capital formation and an important contribution to stability in a capital markets environment that is often all too focused on quarterly returns."

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