June 27, 2018
BlackRock Chairman & CEO Larry Fink Discusses Wide Range of
Topics at OCERS Investment Committee Meeting
its regular meeting on June 27, 2018, the
Committee hosted a presentation and discussion with Larry Fink, Chairman and
Chief Executive Officer (CEO) of BlackRock, Inc. Founded in 1988, BlackRock is
the largest money-management firm in the world.
like to thank OCERS for the partnership we've had for these many years," Mr.
provided the OCERS Investment Committee with observations about the global
economy, as well as the hot topic of trade. He also answered a number of
questions from the Investment Committee members. His discussion frequently
focused on conditions and recent developments in Asia, South America, Europe and
the U.S. Many of his observations touched on the rise of China, noting the
leadership of that nation is focusing on long-term growth.
that while 400 million Chinese are in poverty, "hundreds of millions" have risen
into the Middle Class over the past 20 years. "China is driving a lot of the
global growth," he said.
spent part of his presentation talking about BlackRock and its role in helping
clients - and individuals - prepare for the future. "We're the largest asset
management company in the world. Our job is to make people's future better." He
added that many people are fearful of money and discussing how to save and plan
for the future.
"We have a
responsibility to help build financial literacy," he said.
Mr. Fink is
Founder, Chairman and Chief Executive Officer (CEO). he also leads the firm's
Global Executive Committee. Mr. Fink and seven partners founded BlackRock in
1988, and under his leadership, the firm has grown into a global leader in
investment management, risk management and advisory services for institutional
and retail clients. Today, the firm is trusted to mange more money than any
other investment firm in the world.
serves as a member of the Board of Trustees of New York University and is
Co-Chairman of the NYU Langone Medical Center Board of Trustees. He also serves
on the boards of the Museum of Modern Arm (MoMA), the Council on Foreign
Relations, and the Nature Conservancy. He is also an Executive Committee member
of the Partnership for New York City.
BlueBay Asset Management, Mondrian Investment Partners Placed on Watch List by Investment
At the June 27 meeting, the
Investment Committee placed both BlueBay Emerging Select Bond Fund and Mondrian
Investment Partners on watch list.
Restructuring at the portfolio manager level
as well as BlueBay's performance since OCERS' inception in 2013 were both
factors in a staff recommendation to place the manager on watch list. OCERS
hired BlueBay Asset Management in March 2013 as a blended hard (U.S. dollar
denominated) currency/local currency manager within the emerging market debt
asset class. At the June 27 meeting, it was reported that there has been
underperformance over the trailing three year and five year spans. As of April
30, 2018, OCERS' net asset value was $276.6 million in the BlueBay strategy.
This represents a 15.0 percent position within the credit asset class and 1.8
percent of the total fund.
Mondrian Investment Partners was hired by
OCERS in October 2010 as an international small cap equity manager. Mondrian has
lagged its benchmark over the trailing one year, three years, five years, and
since OCERS' inception. As of April 30, 2018, OCERS' net asset value was $160.2
million in the Mondrian strategy. This represents a 2.6 percent position within
the global public equity asset class and 1.0 percent of the total fund.
As of May 31, 2018, OCERSí
total fund was more than $15.7 billion.
OCERSí Board of Retirement
will hold its next meeting at 9 a.m. on Monday, July 16, 2018. OCERS' Investment
Committee will meet at 9 a.m. on Thursday, July 26, 2018.