Pennsylvania SERS Approves $675 Million in New Investments

System has approved nearly $1.8 billion in investments since September.

The $28.7 billion Pennsylvania State Employees’ Retirement System (PSERS) approved $675 million in new investments at its board meeting Wednesday. The system has now approved nearly $1.8 billion in new investments since September.

Within the Global Public Equity asset class, PSERS decided to hire two managers for its emerging investment manager program, and earmarked $200 million to invest with Leading Edge Investment Advisors, LLC as part of an emerging markets equity strategy. It also will invest $200 million with FIS Group, Inc., as part of a non-US small cap equity strategy.  PSERS said that funding for both strategies will come from the MCM Russell 1000 Index portfolio.

Within the fund’s multi-strategy asset class, the PSERS board agreed to invest another $200 million in Eaton Vance Management’s Global Macro Absolute Return Advantage Strategy. Funding for the strategy will come from the MCM Bond Index portfolio.

And the final $75 million in approved investments has been committed to LLR Equity Partners V, L.P. PSERS described this as a follow-on investment to focus on growth opportunities in the healthcare, technology, and service industries. The board said the investment will be funded by cash.

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The $675 million allotment follows $175 million in new investments announced in December, as well as $225 million the previous month, and $700 million in September.

The board also approved a 2018 aggregate pay increase budget of 5% of the investment professional payroll. It said that individual increases, when appropriate, will vary based on performance reviews.

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