Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Performance Update topic
No spam. Unsubscribe anytime.
Commission hears quarterly performance report as plan nears $47 billion
Summary
Mr. Moore reported the retirement plan ended the year near $47 billion, with staff-added implementation value of about $2.5 billion over three years; commissioners discussed defensive positioning in bonds and opportunities from market volatility.
Mr. Moore presented the commission’s quarterly investment performance update on Feb. 27, reporting the plan ended the year near an all-time high of $47 billion and noting staff implementation had added approximately $2.5 billion of value over the last three years.
He highlighted that the five- and ten-year implementation performance exceeded the plan’s 7% assumed rate of return, attributing most long-term gains to manager selection and active implementation. ‘‘Our implementation over those five and the 10 year periods have allowed us to meet that hurdle,’’ Moore said.
Moore described the team’s recent positioning: reduced off-benchmark risk, higher cash and Treasury holdings, and less credit exposure. Commissioners discussed how that defensiveness in bonds detracted from near-term performance while portable alpha strategies added value. Moore said the portfolio was intentionally close to policy benchmarks in the short term to await better opportunities but remains positioned to ‘‘take advantage of some of the volatility’’ if markets sell off.
Staff also noted private equity activity, mentioning an investment vehicle (HG Saturn) and co-investment flow; a recent close was reported as under the 5% threshold for a specific commitment (details not specified in the transcript).
The presentation closed with commissioners asking for more real-time assessments at the next meeting; Moore and staff said they would provide updated attribution and an implementation review at the commission’s next convening.
