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Wednesday June 27, 2018




BlackRock Chairman & CEO Larry Fink Discusses Wide Range of Topics at OCERS Investment Committee Meeting


At its regular meeting on June 27, 2018, the Investment 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.


"I would like to thank OCERS for the partnership we've had for these many years," Mr. Fink said.


Mr. Fink 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.


He explained 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.


Mr. Fink 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.


Mr. Fink 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 Committee


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.



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