Friday, 27 March 2015
Last updated 3 hours ago
Sep 19 2007 | 8:16am ET
The $80 billion Ohio Public Employees Retirement System is revamping its $13 billion healthcare fund to include a 5% allocation to private equity.
During its July meeting, the system’s investment committee decided to shift its allocation to a 60% equity plus alternatives and 40% fixed income mix.
The new equity portfolio includes a 24.5% allocation each to domestic and international stocks, 6% to real estate investment trusts and 5% to private equity. The fixed-income portfolio has a 20% target for Treasury inflation-protected securities, 10% to global bonds and 10% to short-duration bonds.
The healthcare fund’s current allocation is 30% U.S. equity, 15% international equity, 15% global bonds, 5% REITs, 20% TIPS and 15% short-duration bonds, but no allocation to private equity. Trustees approved the changes, which were recommended by Mercer Investment Consultant, on Sept. 11. Mercer was selected as OPERS’ generalist consultant in May, replacing Ennis Knupp + Associates.
Mercer estimates that the new private equity allocation has an expected real compound return that is 0.5% per annum higher than for the current allocation “with only a slight increase in expected risk as measured by standard deviation of returns.” Mercer also projects that it will take roughly seven years to transition to the new p.e. allocation, assuming that the system implements the p.e. allocation in 2008. In the interim, while p.e. commitments are being funded, Mercer recommends system hold the remainder of the target allocation to p.e. be held in U.S. equity.
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…