Home > News > Risk > Florida SBA Commits Over $1 Billion to Nine Managers
Risk

Florida SBA Commits Over $1 Billion to Nine Managers

Funds go toward private equity, real estate, and distressed debt investments.

By Michael Katz

The Florida State Board of Administration (FSBA) has committed just under $1.1 billion to nine managers in the third quarter to invest in private equity, real estate, and strategic investments.

The FSBA, which oversees $195.6 billion in total assets, committed a total of $300 million to private equity investments. It committed $100 million to the TPG Growth IV fund, and $25 million to the TPG The Rise Fund, both which are managed by TPG Global; $100 million to the Waterland PE VII fund, and $75 million to the Francisco Partners V fund, managed by Waterland Private Equity Investments and Francisco Partners, respectively.

The FBSA also committed $125 million to real estate investments, including $75 million to the Heitman Val IV fund managed by Heitman, and $50 million to the Capman II fund managed by CapMan.

For distressed debt investments, the board of administration committed $650 million, including $200 million to the GSO Capital Solutions Fund III, which is managed by GSO Capital Partners; $150 million to the CVI Credit Value IV fund, managed by CarVal Investors; $150 million to the Benefit Street Debt Fund IV, managed by Benefit Street Partners; and $150 million to the GOF II Feeder B fund, managed by Glendon Capital Management, which is a new manager to the FSBA.

Never miss a story — sign up for CIO newsletters to stay up-to-date on the latest institutional investment industry news.

Tags: , , ,

Home > News > Newsmakers > N.C. Retirement System Boasts of Funded Status
Newsmakers

N.C. Retirement System Boasts of Funded Status

Conservative assumptions and disciplined funding helped state rank among top-five funded pensions.

By Michael Katz

North Carolina’s Teachers’ and State Employees’ Retirement System (TSERS) reported a funded level of 90.4%, while the Local Governmental Employees’ Retirement System (LGERS) was 95.2% funded through Dec. 31, 2016, making the Tar Heel state one of the five highest-funded state pension plans in the US, according to S&P Global.

“We are very pleased with the valuations relative to our peers,” said North Carolina State Treasurer Dale Folwell in a statement. “However, given the fact that life expectancy is increasing and interest rates are at historic lows, we must focus on not just preserving and strengthening these plans, but sustaining them for the future as well.”

Annual valuations on the overall percentage of funding for each pension plan directly impact the amount of money employers must contribute. Each October, the boards of trustees receive valuations for each of the seven state-sponsored retirement, disability, or death plans managed by North Carolina’s Department of State Treasurer (DST).

“Even with our assumptions that in aggregate are more conservative, the North Carolina Retirement Systems continue to be well-funded relative to our peers,” said Steve Toole, executive director of the Retirement Systems, a division of DST.

Never miss a story — sign up for CIO newsletters to stay up-to-date on the latest institutional investment industry news.

The DST said that the high funded status of TSERS and LGERS is a direct result of the state’s general assembly fully funding the recommended contribution requirements, assumptions that tend to be more conservative than other similar public systems, and a funding policy that aggressively pays down unfunded liabilities over a 12-year period.

“We’re thankful that the general assembly, through North Carolina taxpayers, has fully funded the pension plus millions more,” said Folwell.

Confirming North Carolina’s high funded status is a new report from S&P Global that says proactive management and funding discipline have placed the state among the five highest-funded state pension plans in the country.  S&P Global gave the North Carolina Retirement Systems an AAA/Stable rating, citing the state’s ability to effectively manage pension liabilities over the long term.

“While the long-term outlook for most US state pensions remains sluggish, we believe that these five states’ exposure to weak market returns and growing pension costs are significantly limited and manageable, improving our view of their overall credit quality,” said S&P in its report, adding that North Carolina is “positioned to remain at very healthy funding ratios through strong funding discipline.”

Tags: , , ,

«