ACERA is a well-diversified public pension plan with a multi-billion dollar investment portfolio. Rather than making investments directly (which would require a massive in-house staff), like all pension funds, ACERA hires investment managers who are experts in particular types of asset classes to make the investments for us.
ACERA’s prospective investment managers are selected and thoroughly vetted by our investments consultant, Verus, according to ACERA’s investment strategy and investment policy. From there, the Investment Committee of ACERA’s Board of Retirement reviews and recommends prospective managers to the full Board, who makes the final selection. ACERA only invests directly with its investment managers and does not work with placement agents or brokers in accordance with our Placement Agent Disclosure Policy.
Currently, ACERA’s is fully invested in its target allocations to traditional asset classes with our current managers, so is not seeking managers for these asset classes. However, many of these managers are subject to ACERA’s periodic review process, which requires the managers to review not only their investment performance, but also their strategy, philosophy, and outlook on the markets, and present to the Investment Committee. Managers that do well are retained. Managers that don’t do so well are put on a watch list where they’re put on notice, and can ultimately be terminated by the Board, all in accordance with ACERA’s pre-established Investment Policy.
ACERA’s investment consultant, Verus, is reviewing private equity and alternatives managers, and prospective managers are encouraged to contact Verus. Additionally, ACERA does have a process to meet with prospective investment product/service vendors which we call Investment Products and Services Introductions.
ACERA is a well-diversified public pension plan with a multi-billion dollar investment portfolio. ACERA’s current target allocation includes the following asset classes: domestic equity, international equity, fixed income, real estate, real return pool, as well private equity and alternatives.
ACERA’s Emerging Managers Investment Policy, adopted on January 17, 2013, stipulates that ACERA invest up to 1% of the portfolio in Emerging Managers, which we define as managers that are managing under $2 billion in equities (only) when they start. If they get to $3 billion or over, they must be graduated and replaced by a smaller manager. Emerging managers typically have new strategies or are early in their development cycle. Emerging managers may be minority- or woman-owned, but are not per se.
Bivium Capital Partners, LLC currently manages ACERA’s emerging manager fund of funds, so prospective emerging managers are encouraged to contact Bivium.
Per the Public Records Act (California Gov. Code 6250 et seq.), ACERA will make available to the public the submitted IPSI Form and all correspondence and documentation submitted during the IPSI process. Except as otherwise required by law, ACERA will not disclose trade secrets or proprietary financial information submitted in an IPSI Form. Any such trade secrets or proprietary financial information, which Investment Vendor believes should be exempted from disclosure, shall be specifically identified and marked as such by Investment Vendor. Blanket-type identific ation by designating whole pages or sections shall not be permitted and shall be invalid. The specific information must be clearly identified as such.
Upon a request for records regarding a submitted IPSI Form, ACERA will notify the Investment Vendor involved of a specific time for when the records will be made available for inspection. If Investment Vendor, in a timely manner, identifies any “proprietary, trade secret, or confidential commercial or financial” information which Investment Vendor determines is not subject to public disclosure, Investment Vendor will be required fully to intervene, justify such exemption, and secure appropriate injunctive orders in all fora exempting such records from disclosure. ACERA reserves the right to independently determine whether any document is subject to disclosure and to make such information available to the extent required by applicable law, without any restriction.