Tuesday, 22 July 2014
Last updated 2 hours ago
Mar 16 2007 | 12:59pm ET
The $32.1 billion Pennsylvania State Employees Retirement System’s board has approved investments in four alternative investment funds. The system will commit up to $40 million to Insight Venture Partners VI, up to $40 million to OCM Opportunities VII; up to $40 million to OCM Opportunities VIIb, and up to $60 million in a follow-on investment in the Avenue Special Situations Fund V.
In addition, the system will also invest up to $25 million in the AG Asia Realty Fund and an unspecified amount in an inflation-protected mandate with Blackstone Alternative Asset Management. The investments will be funded from cash as part of SERS’ long-term investment plan.
SERS last year earned 16.4% on its overall investments, thanks in part to private equity, which netted it a 23.2% return. Also contributing to the system’s overall strong performance was its portable alpha strategy, according to CIO Peter Gilbert. As applied in the large-cap domestic stock segment of the portfolio, in 2006 portable alpha boosted returns by 5.4% points above the Standard & Poor’s 500 Index, which returned 15.7%.
“In the five years since its inception, our portable alpha/fund of hedge funds strategy has now added more than $1 billion in above-market returns, without materially increasing risk,” Gilbert said.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…