Two US banks with tech connections failed this month, resulting in losses for many investors, including public-sector pension funds that are responsible for ensuring the retirements of government staff like teachers and firefighters. While pension funds have benefited from bull markets, they have also suffered from many investments that have gone bad. The losses incurred by the pension funds were in Silicon Valley Bank and Signature Bank, and experts aren’t overly concerned as the pension funds, like all diversified investors, only held small portions of their portfolios in the banks. However, the losses depict how pensions are exposed to risk as they try to reduce funding gaps. Public-sector pension funds that took losses, including CalPERS, Ohio State Teachers’ Retirement System, New York State Common Fund, State Teachers’ Retirement Fund, and Washington State Investment Board, held no more than a few dollars out of every $10,000 in assets in the banks’ stocks.

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