Tuesday, 22 July 2014
Last updated 10 min ago
Mar 21 2008 | 11:31am ET
The $35 billion Pennsylvania State Employees’ Retirement System gained 17.2% in 2007 on the strength of its allocations to private equity and portable alpha strategies.
On a macro level, PaSERS Chairman Nicholas Maiale said the 2007 performance, which amounts to $5.2 billion in earnings, placed the fund among the top 5% of all large public pension funds. Chief Investment Officer John Winchester reported that the fund’s top-performing asset class in 2007 was p.e., with a return of 41%. Other asset classes posting returns in excess of the total fund return, Winchester said, were inflation protection (including commodities), 31.4% and real estate, 22.6%.
Winchester also highlighted the performance of the fund’s domestic stocks asset class, which earned 9.5% versus a benchmark of 5.1%. The difference was almost entirely attributable to the fund’s portable alpha absolute return strategy, using a combination of swaps and funds of hedge funds, Winchester said.
“In all, the portable alpha absolute return strategy has generated $1.6 billion in earnings for the fund since inception in 2002,” he noted.
In other PaSERS p.e. news, the fund has committed up to $40 million to ABS Capital Partners VI, up to $50 million to Lime Rock Partners V, up to $50 million to Madison Dearborn Capital Partners VI and up to $15 million to Versa Capital Partners II, as follow-on investments.
All investments will be funded from cash.
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…