Wednesday, May 30, 2018
At its regular meeting on May 24, 2018, the Investment Committee placed ASB Capital Management on Watch List for underperformance.
OCERS has been invested in the ASB Allegiance Real Estate Fund (core real estate) since January 2013. While the Allegiance Fund enjoyed strong performance at the onset of OCERS' investment (2013-2015), the fund struggled in 2016 and 2017. Due to performance challenges over the past 24 months, the fund lags its benchmark over the trailing one year, three years and since OCERS' inception.
At its regular meeting on May 24, 2018, the Investment Committee placed Pictet on Watch List for underperformance and change in key personnel. OCERS hired Pictet Asset Management in March 2013 as a local currency manager within the emerging market debt asset class.
OCERS' staff was informed in early May 2018 that Simon Lue-Fong, Head of Global Emerging Market Debt, resigned from Pictet Asset Management. Additionally, Pictet's performance has struggled since OCERS' inception both on an absolute basis and relative to the benchmark.
In other action taken by the Investment Committee on May 24, a preliminary plan for real estate commitments, structure and ranges was approved. Here are the key elements approved by the Investment Committee:
|1.||Tactically re-balance the portfolio toward a 60/40 mix of Core/Non-Core|
|2.||Re-balance geographical U.S. exposures while tactically considering non-U.S. opportunities|
|3.||Target new commitments of ± $75 million on average|
|4.||Limit manager concentration to 15 percent of the total private real estate program|
As of April 30, 2018, OCERS’ total fund was at $15.7 billion.
OCERS’ Board of Retirement will hold its next meeting at 9 a.m. on Wednesday, June 27, 2018.