PERS board approves private-equity benchmark change, adds managers to watch list

The Public Employees Retirement System of Mississippi board voted to replace its private-equity performance yardstick and to add two global equity managers to a watch list.

Board leaders approved staff recommendations to change the plan’s private-equity benchmark from the S&P 500 plus 3% to the Cambridge private-equity benchmark and to apply the change retroactively for reporting on the fiscal year that closes June 30. The board also approved adding Baillie Gifford ACWIx US All Cap and Harding Loevner Global Equity to the fund’s watch list.

Staff told trustees the change is intended to provide a more representative measure for private-equity performance, not to make results appear better or worse. “The intent … is to make a recommendation to the board to have the best available or a better benchmark, that’s more reflective of that asset class,” said a staff presenter. Board members said they appreciated the rationale but pressed for clarity on the retroactive application and on how far the fund missed the prior benchmark this year. “Did they ever disclose how far they missed the benchmark?” asked a trustee during discussion.

Staff and consultants said the Cambridge benchmark smooths short-term volatility and better reflects private-market dynamics; they also said S&P-based information would remain available for comparison. The motion to adopt the Cambridge benchmark and to apply it for year-end reporting passed by voice vote.

Trustees did not vote to change asset-allocation targets during the discussion. Staff emphasized the move is intended for measurement and manager evaluation, not a change in the fund’s allocation policy.

The board’s action will appear in the fund’s June 30 reporting and be used in performance evaluation going forward.