Iowa To Seek Portable Alpha

Jun 30 2006 | 5:55pm ET

The $17 billion Iowa Public Employees Retirement System will issue 2-3 RFPs for portable alpha managers over the next 12-18 months, with the first, which is for enhanced cash portable alpha managers, likely to be issued at the end of September.

The fund began receiving an education on portable alpha last year. Melinda Prince, executive assistant, said that that the board has not yet determined the allocation size to portable alpha and the plan and consultant Wilshire Associates are still in the planning stages regarding the selection process. She said hedge funds to be utilized in the portable alpha space will be limited to fund-of-hedge funds.

The plan will discuss the searches at its Sept. 21 board meeting and will likely approve its first search at that time. All RFPs are posted on the plan's Web site (www.ipers.org).

The money for portable alpha will come from a restructuring of the plan's $6.3 billion domestic equity portfolio, a move made to improve the plan's risk-adjusted ratio. The restructuring will not eliminate any current domestic equity strategies or managers but may reduce some allocations to current strategies.

The plan also has lowered its maximum dollar limit on calendar year private equity commitments to 2% of the fund's prior year market value as of June 30, plus the value of distributions received from the private equity portfolio during the prior fiscal year. The previous limit was 3% of the market value, with no adjustment for private equity investment distributions.


In Depth

Steinbrugge: Top 10 Hedge Fund Industry Trends for 2017

Jan 3 2017 | 9:03pm ET

Each year, Agecroft Partners' Don Steinbrugge predicts the top hedge fund industry...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

DarcMatter: The Top Trends in Alternative Investments for 2017

Jan 13 2017 | 8:22pm ET

The $7 trillion alternative investments industry is poised for continued growth...

 

From the current issue of

The U.S. Commodity Futures Trading Commission (CFTC) ordered The Goldman Sachs Group Inc., and Goldman, Sachs & Co. to pay a $120 million penalty for attempted manipulation and false reporting of ISDAFIX Benchmark Rates, a global benchmark for interest rate products.