Texas Muni $700M to Opportunistic Credit, Alaska Commits to Equity Factors

30 Jun

Texas Muni $700M to Opportunistic Credit, Alaska Commits to Equity Factors

At Thursday’s meeting, Texas Muni considered $700 million in opportunistic private debt commitments.  Three managers, five funds were considered, strategies included distressed/special situations both European and global focus, asset backed loans and CLO.

At last week’s meeting, Alaska Retirement committed $200 million to a multi factor beta strategy.  Execution of the strategy, will be managed internally with the fund contracting with a research firm to provide the constituents of their multi-beta, multi-strategy indices.  At the same meeting, a small cap manager was terminated with the assets to be managed internally passive.

At Tuesday’s meeting, Verus will provide StanCERA an implementation schedule for achieving the new target asset allocation, several new mandates are planned.  US Treasury and Risk Parity searches are scheduled for October, Liquidity mandate for November, Private Credit for January, Value Added Real Estate and Private Equity for February.

Research presentations added this week included PCA providing Rhode Island a benchmarking study of comparable public funds asset allocation trends.  At the same meeting PCA reviewed the survey results from the National Association of State Retirement Administrators which explored funding ratios, revenues and plan expenses.  NEPC will provide Fresno City a Non US Equity Overview, “NEPC encourages an overweight to non-US developed market equities.”  This presentation was prepared prior to Friday’s Brexit news, see NEPC’s BREXIT…What Now? for post commentary.  Alaska Retirement considered Global vs. Regional Portfolios.  RVK provided LA Water & Power part 3 of the Emerging Manager Program Education, the study examined emerging manager of manager programs for all cap equity and small cap equity, on the aggregate the performance results were not compelling.