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RSIC votes to raise CIO delegated limit for private‑market investments to 1%
Summary
The Retirement System Investment Commission on June 5 approved amending its delegation policy and SIOP to raise the staff delegation on illiquid/private‑market investments from 75 basis points to the 1% maximum allowed by state law, citing efficiency and scale benefits.
The Retirement System Investment Commission voted June 5 to amend its delegation policy to increase the maximum delegated commitment for illiquid (private‑market) investments from 75 basis points to 1% of plan assets, the full amount permitted under state law. Mr. Hitchcock, the commission’s chief executive officer, proposed the change and read the motion for the commission to authorize staff to make technical and formatting edits to the delegation sections of the SIOP.
Hitchcock told commissioners that the delegation authority created by the 2017 pension‑reform statute allowed up to 1% for illiquid investments but that the commission had initially limited delegated commitments to 75 basis points as a cautious “proof of concept.” He said raising the limit to 1% would let staff “concentrate more assets with higher conviction managers” and improve negotiating power with larger private‑markets partners.
A Veros representative, answering a commissioner question about peer practice, said delegation arrangements vary across state systems but that a 1% delegation for illiquid commitments is consistent with practices among longer‑standing delegating funds. Commissioners discussed liquidity definitions and operational exceptions; staff clarified that the commission treats index implementation for public equity as an implementation decision (not an investment decision) and therefore large passive implementation does not count against delegated limits.
The motion, which would update sections 5C4 and 6C3 of the delegation policy and corresponding language in the SIOP, was moved and seconded on the record. The commission approved the motion by voice vote. The motion text as read by the CEO authorized staff to change the 75 basis point references to 100 basis points (1%) and to make consistent technical edits.
The record does not identify the individual mover or seconder by name, and no roll‑call tally with member names was recorded in the transcript. Staff will implement the SIOP changes to reflect the new delegated limit.
