Friday, February 24, 2017
Monthly Investment Portfolio Report provides positive news
At its February 22, 2017 meeting, OCERS' Investment Committee received an update about OCERS' preliminary fund performance as of January 31, 2017. The Investment department reported that OCERS' total fund recorded a 1.68 percent increase (recording more than $226.5 million in investment gains) in the month of January. OCERS reported a one-year return of 13.50 percent as of that date, and a trailing five-year return of 6.66 percent. For the trailing 7-year span, OCERS recorded a 7.22 percent gain.
As of January 31, 2017, OCERS' total fund was at an all-time high of $13.89 billion.
Asset Allocation update
As part of the Investment Committee's ongoing consideration of revising OCERS' asset allocation, the Committee voted to adopt a new asset allocation at its January 25, 2017 meeting. At its more recent meeting held on Wednesday, February 22, 2017, the Committee focused on the review of possible target ranges and implementation related to OCERS' asset allocation.
Among the topics discussed by the Committee were:
Discussion and adoption of target ranges
Re-categorization of existing strategies
Elimination of existing strategies that no longer fit into the adopted asset allocation
An effort to simplify OCERS' portfolio while maintaining diversification.
The Investment Committee heard from OCERS' investment consultant Meketa Investment Group, as well as members of OCERS' Investment team, and then unanimously voted to receive and file the item. The Committee will continue to discuss asset allocation, including possibly adopting strategic plans for each asset class going forward, when it meets again in March 2017.
Meketa Investment Group selected to provide real estate monitoring services for OCERS
In other action taken on February 22, the Investment Committee voted to select Meketa Investment Group to provide real estate monitoring services, effective immediately.
Meketa already maintains current research on 95 percent of the managers in OCERS' real estate portfolio.
The selection was mandated by the recent departure of the real estate team from former real estate consultant RVK, resulting in OCERS declaring the contract for real estate services to be null and void.
OCERSí Investment Committee will hold its next meeting at 9 a.m. on Tuesday, March 28, 2017.