Friday, November 21, 2014
Investment Committee actions taken on November 19, 2014
At its regular meeting on November 19, 2014, the Investment Committee took a number of actions related to OCERS' portfolio.
The Committee voted to commit $100 million to the Kayne Private Energy Income Fund (subject to final due diligence and successful contract negotiations). OCERS previously invested $70 million in August 2012 in the Kayne Anderson Energy Fund VI.
The Committee approved a two-part recommendation from staff and OCERS' investment consultant NEPC related to the retirement system's private equity program. In 2015, OCERS will commit $75 million to Pantheon Ventures, $50 million to Abbott Capital, and $25 million to Adams Street (all of them incumbent managers). The second part of the item saw the Committee vote to pre-commit $25 million from 2017 and 2018 to Pantheon as a subscription to a "dry powder portfolio reserve" to initiate timely pro-cyclical investments in recessionary/contracting capital markets.
In other action, the Committee approved a staff recommendation to authorize the CIO to engage one of three firms to implement a currency hedging strategy for OCERS' euro currency exposure related to equity investments, subject to semi-annual reviews by the Investment Committee or Manager Monitoring Subcommittee, for a period not to exceed three years and for a notional exposure not to exceed 50 percent of OCERS' risk advisor's estimated effective euro currency exposure in the international equity portfolio or $500 million, whichever is less.
Investment Portfolio Report update
The Investment Committee also received a preliminary update about OCERS' fund performance as of October 31, 2014. Chief Investment Officer Girard Miller reported that OCERS' total fund has a year-to-date positive return of 4.95 percent, and recorded a positive return of 0.52 percent during the month of October. OCERS reported a three-year return of 8.89 percent as of that date, and a trailing five-year return of 8.75 percent. Over the longer 10-year span, OCERS return was 7.18 percent return as of the end of October.
of October 31, 2014, OCERS' total fund was more than $11.8 billion.
OCERS' Investment Committee will next meet at 9 a.m. on Wednesday, December 10, 2014.
OCERS receives Public Pension Coordinating Council (PPCC) Standards Award for
Funding and Administration
At the regular Board of Retirement meeting held on November 17, 2014, the Board of Retirement recognized OCERS' staff on receiving the Public Pension Standards Award for Funding and Administration. Presented by the Public Pension Coordinating Council (PPCC), OCERS received the award in recognition of meeting professional standards for plan funding and administration as set forth in the Public Pension Standards.
The PPCC is a coalition of three associations that represent public pension funds who cover the vast majority of public employees in the U.S. This marked the second consecutive year that OCERS qualified for the award.
OCERS' regular Board of Retirement will next meet at 9 a.m. on Monday, December 15, 2014.