Thursday, September 29, 2016
Monthly Investment Portfolio Report update
At its regular meeting on September 28, 2016, the Investment Committee received an update about OCERSí preliminary fund performance as of August 31, 2016. Chief Investment Officer Girard Miller reported that OCERSí total fund has a preliminary year-to-date positive return of 6.21 percent. OCERSí fund recorded a positive return of 0.82 percent in the month of August, with total domestic equity and total emerging markets equity among the strong performers. OCERS reported a one-year return of 6.39 percent as of that date, and a trailing five-year return of 6.63 percent.
As of August 31, 2016, OCERSí total fund was at an all-time high of more than $13 billion.
Committee provisionally approved a commitment of $125 million to the
forthcoming Kayne Anderson KARED real estate debt fund subject to further
and final due diligence and contract negotiations. OCERSí investment staff
and the systemís investment consultants will be conducting further analysis
in coming weeks.
The Committee approved the staff recommendation to continue the securities
lending program with State Street.
Regarding the Real Estate Consultant RFP, the Investment Committee referred
this RFP back to staff, pending completion of OCERSí broader asset
allocation studies and a discussion first of portfolio structure
alternatives that could have impact on the consultant selection process. RVK
will continue to serve OCERS under a contract extension into early 2017.
Regarding the Private Equity RFP item, the Committee authorized the CIO to prepare and issue an RFP. Incumbent managers Abbott, Adams Street, Mesirow and Pantheon will be invited to participate alone with qualifying discretionary private equity advisors. The RFP is expected to be released in the next 30-45 days. A quiet period has been invoked, so marketing contacts are prohibited. OCERSí Web site will post the RFP once it is released. Firms may register interest in the RFP at RFP4PE@ocers.org with a one-line email containing contact information.
No formal actions
were taken on Asset Allocation. That discussion and deliberation process is
expected to continue through December. The CIO provided an oral update on hedge
funds and staff work on the transition plan for absolute return strategies that
will be presented at a future meeting.
The next regular Investment Committee Meeting will be held at 9 a.m. on Wednesday, October 26, 2016 in the Saddleback Room at OCERS, 2223 E. Wellington Ave., Suite 100, Santa Ana, CA.