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OCERS EXTRA

 

Friday, November 18, 2016

 

Investment Committee approves Infrastructure mandates

 

At its regular meeting on November 17, 2016, the Investment Committee approved a staff recommendation to approve a commitment of $130 million to Argo Infrastructure Partners. The Committee also approved a commitment of $130 million to a custom BlackRock Global Renewable Power Fund II platform. Both investment mandates are subject to additional due diligence.

 

The approval of the two mandates would complete the 2 percent of total portfolio target level now pending for infrastructure, a specific component within OCERSí broader Real Assets category.

 

BlackRock TIPS index fund update

 

In other action taken at the November 17 meeting, the Investment Committee authorized CIO Girard Miller to invest up to $250 million in the BlackRock TIPS index fund subject to final due diligence and concurrence of both OCERS consultants, Meketa and PCA.

 

OCERS has previously invested in TIPS as part of the fundís Real Return allocation under the NEPC-era asset allocation. In the 2013-2014 timeframe, OCERS discontinued that investment strategy as interest rates plunged along with declining inflation expectations.

 

If there is a material uptick in inflation in the future, it is anticipated that TIPS will record higher returns than conventional U.S. Treasury bonds; in addition, TIPS provide additional diversification to OCERSí broader portfolio and a partial offset to growth (equity) risk.

 

 

As of September 30, 2016, OCERSí total fund was more than $13 billion.

 

The next Investment Committee meeting will be held at 9 a.m. on Wednesday, December 14, 2016. OCERSí Board of Retirement will meet at 9 a.m. on Monday, December 19, 2016.

 

 

 

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