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20pi0279.pdf RunDate: 12/28/20 Full Page Color: 4/C February 8, 2021 PIonline.com $50 an issue / $350 a year

THE INTERNATIONAL NEWSPAPER OF MONEY MANAGEMENT

Michael M. Santiago/Getty Images Governance THE P&I 1000 OVERVIEW Board diversity to play big role Largest funds in upcoming proxy season come out ahead

BY HAZEL BRADFORD

Pressure on corporate boards to be more diverse is likely to intensi- in volatile year fy this year, as institutional investors ramp up requests and shareholder proposals, more states Assets of top 1,000 consider mandates and even Nas- retirement funds rise daq gets involved. The largest group of shareholder 6.6% to $12 trillion proposals — 64 out of 239 — sub- mitted so far this year by the Inter- faith Center on By DANIELLE WALKER Illustration by Ana Garcia Bernaus Illustration by Corporate Re- sponsibility in- The 1,000 largest U.S. retirement volved diversity funds emerged from the year ended and racial jus- Sept. 30 with healthy coffers, despite tice, for exam- a period marred by bouts of historic ple. The cen- Hedge Funds stock market losses and volatility. ter’s 300 During the year ended Sept. 30, members rep- retirement funds saw their assets MORE ON resent faith GameStop short hysteria grow 6.6% to $12.09 trillion, in com- THE LARGEST MOMENTUM: communities, parison to the previous year when RETIREMENT Aeisha Mastagni asset managers, assets of the 1,000 largest funds grew unions, pension puts managers on notice by only 3%, results from Pensions & FUNDS funds and other socially responsi- Investments’ annual surveys show. ϐ Asset owners turn to private ble investors with combined assets wider hedge fund industry — may Over the five years ended Sept. Hedge funds forced to credit to find returns. Page 3 of more than $500 billion. be damaged by the episode. Hedge 30, assets in this universe grew “There is definitely momentum rethink strategies in funds may have to invest more in 36.7%, up from $8.84 trillion. ϐ Manager diversity programs around diversity and inclusion, wake of retail attack large-cap stocks rather than small Jonathan Pliner, the New York- change with the times. Page 3 around companies’ willingness to cap, keep their positions better hid- based U.S. head of delegated port- ϐ South Carolina finds that tackle these issues and regulators den from prying eyes and avoid folio management at Willis Towers By SOPHIE BAKER, JAMES simplicity pays. Page 3 willing to do something. There’s a COMTOIS and CHRISTINE crowded stocks, sources said. Watson PLC, noted that retirement lot happening right now,” said Aei- WILLIAMSON The recent episode saw a group funds having largely weathered ϐ Private credit, infrastructure sha Mastagni, portfolio manager for of retail investors organize what historic lows in the stock market lead alternatives. Page 15 sustainable investment and stew- Retail investors’ frenzied attack some have labeled a “flash mob” to was “not entirely surprising … giv- ϐ Equity gains propel 457 ardship strategies at the $283.4 bil- on short sellers during the week of buy up shorted stocks of compa- en the speed with which markets plans. Page 15 lion California State Teachers’ Re- Jan. 25, which saw U.S. equity trad- nies, including GameStop Corp. rebounded” in the second quarter tirement System, West Sacramento. ing by volume hit a record high, is The electronics retailer had been of 2020 following the onset of the ϐ Hawaii fund goes its own way, “We are the ultimate long-term forcing some hedge funds to re- one of the most shorted stocks on coronavirus pandemic. avoids pigeonholes. Page 15 shareholder, and what we are trying think their strategies and ap- Wall Street — something the group “It really was the fastest recovery ϐ The list of the Top 1,000 to do is mitigate risk and add value. proaches to investing. of investors sought to reverse by from a bear market,” Mr. Pliner added. funds begins on Page 16 I don’t think anybody debates the Sources fear that generating al- buying the stock and driving the “Given the speed of recovery and academics anymore; now it’s about pha from short positions — and the SEE GAMESTOP ON PAGE 38 what the Fed attempted to do with ϐ For the full report, go to SEE BOARDS ON PAGE 37 SEE TOP 1000 ON PAGE 40 pionline.com/sponsors21

SOUND BITE THE P&I 1000 INVESTING

NATWEST GROUP PENSION FUND’S ROBERT WAUGH: ‘We have one Holding tight on allocations Robert Tannenbaum manager who was passing ensures investment success their travel Fund CIOs keep their taining their asset allocations costs to us. through rigorous portfolio rebal- They manage focus during early days, ancing and by taking advantage of a lot less than and see good results distressed investment opportunities created by pandemic conditions, before.’ Page 2 By CHRISTINE WILLIAMSON their portfolios came out of the panic phase in 2020 in good shape and Chief investment officers’ secret went on to produce strong perfor- for investment success in 2020 was mance in the year ended Dec. 31. Longtime leader leaving simple: stick to the plan. “The pandemic illustrated per- None of the CIOs Pensions & Invest- fectly that good investment policy Aberdeen Standard Asia ments contacted said it was easy to fulfills exactly the role that’s need- manage multibillion-dollar defined ed to keep your portfolio on track. Aberdeen Standard’s Hugh benefit plans during the early phase The power of this process can’t be Young is confident the firm’s new of market turmoil that flared up in understated,” said Ashbel C. Wil- Asia unit leader will have few response to the COVID-19 outbreak. liams Jr., executive director and CIO worries. Page 2 But they stressed that by main- SEE INVESTING ON PAGE 42 PLANNING: Ashbel C. Williams Jr. said good investment policy made the difference. 2 | February 8, 2021 Pensions & Investments

IN THIS ISSUE Sovereign Wealth Funds

VOLUME 49, NUMBER 3

Defined contribution Direct lending partnerships open new doors Voya Financial joined the BlackRock Apollo Strategic Origination not available to comment. Emergency Savings Initiative and will Sovereign wealth funds join up Partners — an origination Spokesmen for Credit Suisse provide “tools and opportunities for with managers to get exposure platform partnership be- Asset Management and Bar- individuals to save more.” Page 6 tween Mubadala and Apollo ings declined to comment. By SOPHIE BAKER Global Management Inc. — Spokesmen for QIA did not Investing which is expected to provide respond to requests for com- A senator and the hedge fund Direct lending partnerships between sov- about $12 billion in financing ment. community are calling for regulatory ereign wealth funds and money managers are over the next three years. It Funds have tried to invest scrutiny regarding the attack on short becoming a neat way for state-owned pools of targets deals of about $1 bil- directly in challenging asset sellers by retail investors. Page 39 capital to gain access to direct lending oppor- lion and will originate oppor- classes such as direct lending tunities and maintain exposure to regions tunities on a global basis. The in the past, but research by Managers operating in the U.K. where public markets look expensive. platform will target scaled in- the International Forum of have refuted claims that they are Committing capital to private markets vestments in large, estab- Sovereign Wealth Funds not complying with cost disclosure strategies is nothing new for sovereign wealth lished corporations. “found that it was difficult for standards. Page 41 funds, but the structure of three deals last Also in September, the $295 them to resource,” said Victo- year are particularly interesting, sources said. billion Qatar Investment Au- ria Barbary, director of strate- Retirement plans In September, the $232.2 billion fund thority, Doha, formed a multi- SCHOOLED: Victoria Barbary gy and communications at the The coronavirus pandemic has Mubadala Investment Co., Abu Dhabi, part- billion-dollar direct lending sees sovereign wealth funds forum in London. “These pri- prompted some U.K. retirement plan nered with Barings LLC to provide financing platform with Credit Suisse using partnerships as a way to vate lending joint ventures sponsors to launch new and improved to European middle-market businesses Asset Management. The plat- learn more about the asset class. are almost the new co-invest. through the Barings Mubadala Enterprise. form focuses on first- and They are trying to learn about financial wellness tools.Page 4 The partnership, which invests alongside second-lien loans to upper midmarket and a new asset class that they haven’t done much Barings parent firm Massachusetts Mutual larger companies in the U.S. and Europe. QIA in before, (but) they don’t have access to the Washington Life Insurance Co., aims to provide $3.5 billion is a significant shareholder in Credit Suisse market as much and deal flow in the space. It’s President Joe Biden withdrew in financing over the next 18 months. Group AG. helpful for them to create these more peer-to- the nominations of three Federal The agreement followed the formation of Spokesmen at Mubadala and Apollo were SEE DIRECT ON PAGE 38 Retirement Thrift Investment Board nominees and one nominee to the INTO THE SUNSET: Investing Federal Reserve Board of Governors. Hugh Young thinks Page 6 that after 29 years in Asia, the time Departments has come for him Investors in U.K. to step aside and At deadline ��40 ESG roundup ��12

Ashleigh Sim/The Straits Times hand the reins to Changes ahead ��44 Frontlines ��8 a new leader. Classified ��36 Hirings ��34 getting tougher Corrections ��4 Other views ��10 Editorial ��10 RFPs ��36 on manager fees Record keeper, manager surveys in progress Cost Transparency Initiative offering Responses to P&I’s annual survey look at charges not linked to investing of defined contribution service providers are due Feb. 26. Firms By PAULINA PIELICHATA record keeping assets for U.S. institutional DC plans are eligible. Armed with new templates allowing greater scru- Results will run April 5. tiny of fees associated with their investments, some U.K. investors are driving hard bargains with their For P&I’s annual money manager money managers. survey, responses are due March Launched by a group of money managers and in- 19. Firms managing U.S. vestors in 2018, Cost Transparency Initiative templates institutional, tax-exempt assets have been giving investors access in some cases to 26 are eligible. Results will run new data points from their managers on fees and May 31. charges associated with different strategies. The initiative’s templates are helping U.K. investors deter- To request a survey or obtain Money Management further information, please contact mine how much non-management fees, such as legal Anthony Scuderi at ascuderi@ costs or third-party costs, pionline.com or 212-210-0140, or make up total fund charg- visit www.pionline.com/section/ Aberdeen’s Young says Asia CEO es. They’re also helping investors to decide whether surveys. those charges are appro- handoff won’t trip up firm’s rally priate and to consider the Entire contents ©2021 Crain Communications Inc. All impact of transaction costs rights reserved. Pensions & Investments (ISSN 1050- By DOUGLAS APPELL “I’ve enjoyed management over the on investment strategies. 4974) is published biweekly by Crain Communications Inc., 150 N. Michigan Ave., Chicago, Ill. 60601-7593. years,” Mr. Young said in a Feb. 2 inter- Most tend to analyze infor- Periodicals postage paid at Chicago, Ill. and at additional Hugh Young, the longtime head of view, but “I think it’s time to pass on to mation annually. mailing offices. Postmaster: Send address changes to Aberdeen Standard Investments’ fresher blood.” Non-management costs Pensions & Investments, Circulation Dept., 1155 Gratiot Avenue, Detroit, Mich. 48207-2912. $16 per issue; $350 money management business in Asia, And the timing for Mr. Buehlmann to hadn’t been easy to deter- per year in the U.S.; $375 per year in Canada; all other will pass the baton he’s run with for take the helm could be “fairly impec- mine in the past, even with countries $475. ‘‘Canadian Post International Publications the past 29 years to a successor at the cable,” he said, with a number of the cost disclosure require- CHANGING UP: Joe Mail Product (Canadian Distribution) Sales Agreement No. 0293539’’ GST #136760444. Printed in U.S.A. start of March — a handover he’s confirm’s offerings in the region — includ- ments under the Markets Dabrowski said some funds fident won’t trip up the firm’s recent ing Asian equities, fixed income, multi- in Financial Instruments are switching asset classes CRAIN COMMUNICATIONS INC recovery from a tough stretch of un- asset and real estate — sporting healthy Directive II, which re- to get better values. Keith E. Crain, Chairman derperformance. three-year numbers again. quires managers to pres- Mary Kay Crain, Vice Chairman An uneventful transition would be Company officials said the firm’s ent cost data in aggregate, consultants said. KC Crain, CEO welcome for the Edinburgh-based global emerging markets strategy is Many U.K. investors have stated they won’t hire Chris Crain, Senior Executive Vice President money management firm — just now among those bouncing back now. The managers that aren’t going to disclose costs and fees in Lexie Crain Armstrong, Secretary emerging from a period of painful out- strategy saw more than $9 billion in line with the CTI templates. And some investors have Bob Recchia, Chief Financial Officer flows in the wake of Aberdeen Asset outflows between 2018 and 2020 after renegotiated fees or reduced the size of allocations G.D. Crain Jr., Founder (1885-1973) Management PLC’s August 2017 merg- weak performance between 2017 and with their existing managers. However, pension fund Mrs. G.D. Crain Jr., Chairman (1911-1996) er with Standard Life PLC. 2018 dragged down three-year returns, executives stressed it’s vital to consider risk and return

Published every other Monday by Crain Communications Inc. Late last month, Aberdeen Standard sending assets tumbling to a low of $16 when looking at costs. Boston: 101 Federal St., Suite 1615A, 02110; Chicago: 150 N. Michigan Ave., Investments announced that effective billion in early 2020 from $44 billion at “There are some (investors) who are looking at 18th Floor, 60601; London: 11 Ironmonger Lane, EC2V 8EY; El Segundo, Calif.: 400 March 1, Rene Buelhmann, former the time of the merger. But for the 12 costs they are incurring ... and are moving out of some Continental Blvd., 6th Floor, 90245-5074; New York: 685 Third Ave., 10017; San Francisco: 71 Stevenson St., Suite 400, 94105; Washington D.C.: 601 13th St. head of UBS Asset Management’s Asia- months ended Dec. 31, the strategy out- structures and some asset classes to (others) to get NW, Suite 800 South, 20005. Pacific business, will become only the performed its benchmark by 6.44 per- better value for money,” said Joe Dabrowski, deputy Address all subscription correspondence to Pensions & Investments, 1155 Gratiot second CEO of Asia the firm’s roughly centage points, bringing its three-year director for policy at the Pensions and Lifetime Sav- Ave., Detroit, Mich. 48207-2912 or email [email protected]. 600 employees in the region have returns back into positive territory with ings Association in London, which helped to develop Member of Business Publications Audit of Circulation known since Mr. Young established its an annualized gain of 95 basis points. the templates. www.pionline.com Asian beachhead in Singapore in 1992. SEE ABERDEEN ON PAGE 42 Robert Waugh, CEO and co-CIO of the £51.6 billion SEE U.K. FEES ON PAGE 40 Pensions & Investments February 8, 2021 | 3

THE P&I 1000 PRIVATE CREDIT LOOKING AHEAD: Treasurer Deborah B. Goldberg said Massachusetts also wants to ‘enhance Asset owners turn economic equity in the business community

for generations to Suzanne Kreiter/The Boston Globe to private credit in come.’ quest for returns Top funds nearly double their allocations to asset class despite high risk potential

By ARLEEN JACOBIUS

U.S. institutional investors are betting big that private credit will provide much-needed yield and an illiquidity premium to public debt, with assets nearly doubling in the year ended Sept. 30. Private credit assets of the largest 200 U.S. retirement plans nearly doubled, up 93.1% to $50.2 billion in the year ended Sept. 30. It is also a 212% increase from 2018, when Pensions & Invest- THE P&I 1000 DIVERSE MANAGERS ments first included private credit in its annual survey of the largest retirement plans. During the survey period, several defined benefit plans added or increased their private Diversity programs change with the times credit allocations, including: ■ $226.4 billion New York Emerging manager initiatives expand THE DATA folio’s managers are diverse, CIO State Common Retirement Andy Palmer said. as calls grow for more thorough effort For data on WMDV- As they continually diversify THE DATA owned managers, the portfolio, “this has been a see page 30. good exercise. ... We believe this For a listing of the funds By HAZEL BRADFORD with the most DB assets in is a fundamental part of what private credit/debt, go to Even some of the earliest adopters of diverse or we do,” he said. page 31. emerging manager programs are finding the need to The bigger problem he sees is getting more diverse change as they outgrow their original goals or face man- candidates into the asset management industry. That Fund, Albany, with a new 4% dates to grow. challenge is gaining “a lot of traction” with public pen- allocation added in April. The Maryland State Retirement & Pension System, sion funds, he said, and has accelerated by the events of ■ $58.7 billion Pennsyl- Baltimore, started in 2007 with its Terra Maria program 2020 that brought racial inequalities into sharp focus. vania Public School Em- for emerging managers. Since then, it has been reinvent- To address the shortage, the pension fund is working ployees’ Retirement System, ed and expanded to where 20% of the $62.5 billion port- SEE DIVERSE ON PAGE 37 Harrisburg, increased credit-related fixed income to CHOOSE WISELY: Nimisha Srivastava said 12% from 10%. THE P&I 1000 SOUTH CAROLINA manager selection will be very important ■ $25.3 billion Los Ange- to earning the desperately needed yield. les Fire & Police Pensions, which added a 2% allocation in August. Simplicity paying dividends for South Carolina fund ■ $15.2 billion Ohio School Employees Retirement System, Co- lumbus, which added a 5% allocation in February 2020. By BRIAN CROCE Carolina state pension funds on be- RSIC portfolio in late 2018 as part of a The New York State Common Fund’s new 4% private credit al- half of the South Carolina Public Em- regular review, he didn’t see much location is not without risk. “An elevated default cycle may certain- There’s very little that’s simple ployee Benefit Authority. simplicity. What he saw was a portfolio ly dampen return expectations, though it will also increase oppor- about running a $35.6 billion invest- The stakes are high for Messrs. with 18 asset classes and 21 bench- tunities for some of our investment partners with dry powder,” ment portfolio. Hitchcock, Berg and the other 40 full- marks. “It was a portfolio that we ar- Matthew Sweeney, spokesman, said in an email. Take it from Michael Hitchcock, time RSIC employees, as both large rived at with the best of intentions but There’s also a risk from so much capital moving into private chief executive officer, and Geoffrey and small decisions can lead to un- we’re trying to put together something credit. “While overcrowding in an investment strategy is always a Berg, chief investment officer, of the foreseen benefits or consequences for that we feel can give us a good proba- concern, the growth in the private credit space is largely due to the South Carolina Retirement System the South Carolina Retirement Sys- bility of exceeding our annual rate of pullback from commercial banks and other lending providers since Investment Commission, Columbia, tems’ 600,000-plus members. return,” Mr. Hitchcock said. “But when the (global financial crisis),” Mr. | SEE CREDIT ON PAGE 44 which manages the assets of South When Mr. Hitchcock looked at the SEE CAROLINA ON PAGE 42

THE P&I 1000 LEADING FIRMS

The most used managers, consultants and custodians Among the top 200 funds as of Sept. 30.

Managers Consultants Custodians

BlackRock Aon State Street

State Street Global Callan BNY Mellon

Vanguard Mercer Northern Trust

J.P. Morgan Aksia J.P. Morgan Times mentioned Times mentioned Times mentioned Blackstone By DB plans Hamilton Lane By DB plans Fidelity By DB plans By DC plans By DC plans By DC plans Prudential Townsend Voya

PIMCO StepStone Great-West 0 5 10 15 20 25 30 35 40 45 Oaktree Albourne

T. Rowe Price Meketa

Wellington Segal Marco 0 20 40 60 80 100 120 140 160 180 0 4 8 12 16 20 24 28 32 36 4 | February 8, 2021 Pensions & Investments

Retirement Plans Virus underlines importance of financial wellness U.K. sponsors add more consolidation programs, short-term Craig Rimmer, policy RESILIENCE: Craig Rimmer them realize that having savings to loans or budget planners. New ad- lead for master trusts said the virus increased fall back on is important, according tools for participants to ditions include webinars and tool- at the U.K. Pensions the focus on participants’ to the same research. kits aimed at helping employees and Lifetime Savings financial issues. Historically, employees have stay afloat during crisis cope with debt and mortgage pay- Association in London. shown little willingness to engage ments as well as manage their re- “It’s to do with peo- in May showed that with financial wellness programs By PAULINA PIELICHATA tirement savings as the pandemic ple being more aware out of 1,000 corporate offered by their employers, consul- goes on. All of these efforts are seen and how (their) house- human resources tants said. Sources said that U.K. U.K. retirement plan sponsors as ways to help employees build re- hold resilience could leaders surveyed, plan sponsors have had a hard time have rolled out a variety of financial siliency, reduce stress and, hope- be affected by a black 83.9% said the COV- striking a balance between commu- wellness tools in the past few years, fully, increase productivity at work swan event like the ID-19 pandemic has nicating that the programs are but the coronavirus pandemic is when money worries are curbed. pandemic. It has shown how important available and making sure they adding new urgency to their efforts The coronavirus pandemic has helped to galvanize people’s focus financial resilience is and that em- aren’t seen as steering people into as well as new tools. intensified the need to help people on that,” he said. ployers should be helping employ- programs. Sources said some plan sponsors navigate financial stress and man- Research developed for financial ees to build up savings. Almost 78% In the past, the takeup of finan- are adopting traditional financial age household savings, save for the wellness platform and workplace of 2,000 surveyed employees agreed cial wellness tools has been poor wellness offerings such as debt short term and pay down debt, said plan provider Cushon Money Ltd. that the COVID-19 crisis has made due to a lack of quality education and promotion from plan sponsors, said Darren Laverty, financial well- being strategist and employee benefits consultant at employee benefit consulting firm Secondsight U.K. Ltd. For example, he said he knew of one company that offered its 1,200 employees a loan consolida- Private Markets Virtual Series tion tool, but only five consolidation loans were taken out. June 15-17, 2021 The PLSA’s Mr. Rimmer added that plan sponsors haven’t been Register now for P&I’s Private Markets Virtual Series. We are hard at work building the agenda with our asset owner confident about facilitating short- advisory board, which continues to grow. With their feedback, we are working on a program by asset owners, for asset term loans from outside lenders be- owners that you won’t want to miss. cause they lacked clarity around One thing that the last year has underlined is that the private markets space is extremely complex in terms of winners their role in promoting the avail- and losers. Having an active approach to managing private assets is paramount to understanding what you have in your ability of such loans. Following the portfolio and where the exposures with each investment lie. This is a key element in asset allocation as investors shift assets outbreak of the pandemic, the from the public markets and allocate new cash to this space. The fact is that rates continue to remain low and private assets PLSA is aiming to clarify what con- present an excellent opportunity for institutional allocators to make up lost ground when it comes to returns. Attendees will stitutes acceptable guidance by the hear from peers on how they are allocating capital and the challenges and opportunities they face when doing so. end of the first quarter, he added. The COVID-19 pandemic, however, has shown plan sponsors that SPECIAL THANK YOU TO OUR CURRENT ADVISORY BOARD: employees need better educational resources to help them to think about their finances holistically. As many employees switched to working from home, employers saw a greater demand for virtual interac- tion and an uptick in participants’ requests and questions. And these plan sponsors turned to improving Cassie Boll Edward B. Creedon Sarah D. Capozzo Terrance Davis their messaging around financial Minnesota SBI University of Illinois Foundation Knights of Columbus Florida SBA wellness.

Doing things differently Robert Cochran, senior corporate pension specialist at Scottish Widows, which has £140 billion ($191.5 billion) in assets under management, said: “The pandemic has encouraged us to do things a little bit differently. At the start of Brad J. Gates James Del Gaudio Will Goodwin Tara Mason the pandemic, we identified that Southern Company PA Public School Employees’ New Zealand Super Fund Health Care Service people started to do things that Retirement System Corporation were not helpful to their financial well-being ... such as people who were in lifestyle funds trying to switch them to cash.” Scottish Widows set up a COV- ID-19 hub for employees and a separate one for employers to answer questions that they had about their finances during the pandemic. Brian Neale Juan Prieto Antonio Rodriguez Ping Zhu “We had a number of colleagues University of Nebraska Mutual of Omaha NYC Board of Education Johnson & Johnson record videos answering those Foundation Retirement System questions and we pushed them out SEE WELLNESS ON PAGE 42 CORRECTIONS & COMPLIMENTARY REGISTRATION AT PIONLINE.COM/PM2021* CLARIFICATIONS SPONSORS: ■ Saba Capital Management was not among money managers that launched a special purpose acquisition company in 2020 or 2021. Incorrect information was For more details please contact Elayne Glick at (212) 210-0247 or [email protected]. Questions? included in the page 3 story *Only asset owners and a limited number of consultants are invited to attend. All registration requests are subject to veriﬁcation. “SPAC launches leap, but P&I reserves the right to refuse any registrations not meeting our qualiﬁcations. The agenda for Private Markets Virtual Series is not created, written or produced by the editors institutions are wary” in the Jan. of Pensions & Investments and does not represent the views or opinions of the publication or its parent company, Crain Communications Inc. 25 issue. İ

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21pi0015.pdf RunDate: 02/08/21 Full Page Color: 4/C 6 | February 8, 2021 Pensions & Investments

Washington Biden yanks Trump picks for Fed, Thrift Savings Plan board By BRIAN CROCE made to various posts on Jan. 3, the ees and members of the uniformed Dunlevy were each nominated to term expiring in September 2022. same day the 117th Congress was services. Mr. Trump originally nom- fill seats held by board members Mr. Barger, managing director of President Joe Biden withdrew sworn in. inated them in May and the Senate whose terms have expired. The NorthernCross Partners, an invest- the nominations of three Federal As expected, Mr. Biden pulled Homeland Security and Govern- board currently has four members. ment advisory firm, was nominated Retirement Thrift Investment the nominations of Christopher mental Affairs Committee in Sep- Chairman Michael D. Kennedy to replace David A. Jones, the Board, Washington, nominees and Bancroft Burnham, John M. Barger tember approved the nominations, stepped down in June following board’s acting chairman, for a term one nominee to the Federal Re- and Frank Dunlevy to the five- but the full Senate never took them the nomination of Mr. Dunlevy, expiring in October 2022; and Mr. serve Board of Governors. member Thrift board, which ad- up before the 116th congressional vice president of investment funds Burnham, chairman and CEO of In total, Mr. Biden on Feb. 4 ministers the $709.6 billion Thrift term expired. Mr. Trump then re- and counselor to the CEO of U.S. Cambridge Global Capital, a private withdrew 32 nominations that for- Savings Plan, the retirement sys- introduced them last month. International Development Fi- venture capital firm, was nominat- mer President Donald Trump had tem for 6.2 million federal employ- Messrs. Barger, Burnham and nance Corp., to replace him for a ed to replace Ronald McCray for a term expiring in September 2024. Mr. Biden also withdrew Judy Shelton’s nomination to the Fed board. In November, the Senate blocked her nomination in a tight vote. At the time, three Republican senators came out against her nomination, sinking its chances of passing. Ms. Shelton, the U.S. executive director of the European Bank for Reconstruction and Development who previously served as an economic adviser to Donald Trump’s 2016 presidential campaign, was nominated to serve the remainder of a 14-year term that expires Jan. 31, 2024, a seat previously held by former Chairwoman Janet L. Yel- len. Ms. Yellen is currently serving as Treasury secretary in the Biden administration. Lawmakers expressed concern about Ms. Shelton throughout the nomination process last year and asked tough questions on issues like Fed independence. n

Defined Contribution Voya joins with BlackRock on 8FMPPLBUNPSUHBHF savings program

By ROBERT STEYER JOWFTUNFOUTGSPNBMMBOHMFT Voya Financial joined the Black- Rock Emergency Savings Initiative and will provide “tools and opportunities for individuals to save more for their future and build greater fi- BTÎYFEJODPNFDPNQMFNFOUJOHBUSBEJUJPOBMEFCUQPSUGPMJP nancial stability,” the retirement and financial services company said. “Providing access to emergency BTNPSUHBHFTTQFDJBMJ[JOHJOQBSUJDJQBUJOHNPSUHBHFT savings opportunities can allow CMFOEJOHUIFRVBMJUJFTPGEFCUBOEFRVJUZ working individuals to avoid tap- ping their retirement funds for un- BTSFBMFTUBUFPšFSJOHJUTVOJRVFDIBSBDUFSJTUJDTBOECFOFŖUT expected expenses and reduces employee financial stress,” a Feb. 2 news release said. Voya will collaborate with Com- $PNCJOJOHPWFSZFBSTPGSFBMFTUBUFFRVJUZBOENPSUHBHFFYQFSJFODFXJUIBQQSPYJNBUFMZCJMMJPO monwealth, a non-profit organiza- JOJOWFTUFEBTTFUT XFIBWFUIFFYQFSUJTFSFRVJSFEUPVOEFSXSJUFBOENBOBHFSFBMFTUBUF¿ tion seeking to improve individuals’ financial security, to develop the BQFSTQFDUJWFUIBUUIPTFXIPNBLFNPSUHBHFMPBOTBTŖOBODJBMJOTUSVNFOUTEPOÁUIBWF savings tools, the news release said. BlackRock announced its Emer- *GZPVIBWFOÁUDPOTJEFSFEQBSUJDJQBUJOHNPSUHBHFTUSBUFHJFT XFSFDPNNFOEUIBUZPVEP gency Savings Initiative in 2019, funded with a $50 million philan- thropic commitment through the BlackRock Charitable Trust. $POUBDUPVSUFBNGPSNPSFJOGPSNBUJPO The BlackRock program “is help- 5IPNBT0Á4IFB UIPNBTPTIFB!VCTDPN ing companies and organizations to identify, shape and test solutions that will create short-term financial 6#43FBMUZ*OWFTUPST--$ stability for vulnerable workers, )BSUGPSEÈ4BO'SBODJTDPÈ%BMMBTÈ/FX:PSL customers and communities,” said the website of the Emergency Sav- ings Initiative. 'JOEPVUNPSFBUVCTDPNSFBMFTUBUFVT “As companies grapple with the long-term effects of the pandemic, the initiative will focus on building 6#43FBMUZ*OWFTUPST--$JTBTVCTJEJBSZPG6#4"(%BUBBTPGh6#4"MMSJHIUTSFTFSWFE resiliency so more people will have a safety net in place for future cri- ses,” the website said. n Reasons to subscribe to the 1,000 P&I Research Center

Access to the P&I Research Center gives you the full picture on the Top 1,000 U.S. Retirement Funds. Compare plan funding and allocations, get the background details on plan sponsors, managers and consultants, and prepare comparative reports for presentations.

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Easily create reports and download the results into Excel. Use this data to create charts to support your presentations. Plus, links to relevant P&I articles provide additional background details.

P&I Research Center data also includes: • Money manager profiles and rankings • Money manager performance profiles • Consultant profiles and rankings • Endowment and foundation profiles and rankings • DC record keeper profiles and rankings • Pension Risk Transfer database • Mergers & Acquisitions database • Legal & Regulatory Tracker • Private Fund Close Database

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21pi0020.pdf RunDate: 02/08/21 Full Page Color: 4/C 8 | February 8, 2021 Pensions & Investments FRONTLINES

LET’S TALK Church fund debuts second podcast series on wellness The Church Pension Fund 28-Day Walking Program,” was (Episcopal), New York, has well-received by members, Ms. launched Choose Well, a nine-part Jones said. podcast focused on well-being When seeking inspiration for a featuring interviews with health subject on another podcast series, and finance experts. Ms. Jones said it grew out of how The series, which consists of the pension fund looks at well- ROUND 2: The Church Pension Fund’s second podcast series is nine parts and features interviews with health and financial experts. nine episodes between 20 and 30 being in its wellness conferences minutes each, was inspired by the for plan participants. That includes financial, financial education at the Consum- Investment Fraud,” also featuring success of the pension fund’s first “We wanted to represent the physical and mental well-being, er Financial Protection Bureau; Ms. Walsh. podcast, said Palmer Jones, director concept of well-being on this Ms. Jones said. “Building Your Ability to Weather The Choose Well podcast is of online learning, education and podcast platform and kind of talk Specific episode topics include Financial Strain,” featuring Gerri available from all major podcast wellness, in a phone interview. about it to a broader audience, and “Building Financial Skills,” Walsh, head of investor education providers. More information is That inaugural podcast, a 28-day also talk about the breadth of featuring Janneke Ratcliffe, former at the Financial Industry Regula- available on the podcast’s website. series called “Walk and Be Well: A well-being,” she said. assistant director in the office of tory Authority; and “Avoiding — ROB KOZLOWSKI

WHAT’S IN A NAME? Acronyms become prophetic when sponsor terminates plans Acronyms are everywhere in the institutional investing industry. Asset owners especially are renowned for referring to their pools of assets as acronyms. Among the Pensions & Investments staff’s favorites are LASERS (Louisiana State Retirement System, Baton Rouge), LAGERS (Missouri Local Government Employees’ Retirement System, Jefferson City) and COPERS (City of Phoenix Employees’ Retirement System). CRYSTAL BALL: George Serafeim, left, and Aaron Seokhyun Yoon used TrueValue London-based IHS Markit Ltd., however, has taken the Labs’ ESG sentiment score to determine if ESG ratings can predict ESG news. practice of acronyms to a new, prophetic level. The computer GAUGING THE EFFECT programming company in its Jan. 22 10-K filing with the SEC announced it had completed the terminations of its U.S. and U.K. defined benefit plans. Study of role ESG ratings The company refers to the terminated plans as “U.S. RIP” and “U.K. RIP.” play in stock prices wins Officially, the acronyms stand for Retirement Income Michael Burrell Plan. They may, however, also rest in peace. Richard A. Crowell Prize — ROB KOZLOWSKI

A paper that examines how the role of environmental, social and governance ratings affect stock prices has won this year’s Richard A. Crowell Prize. TRYING George Serafeim and Aaron Seokhyun Yoon won the prize for SOMETHING their paper “Stock Price Reactions to ESG News: The Role of ESG Siv Dolmen DIFFERENT: Ratings and Disagreements.” NBIM CEO The prize, sponsored by PanAgora Asset Management, Nicolai Tangen, recognizes research that connects theory with application in the left, introduces field of quantitative investment management. Anders Meland, Mr. Yoon, assistant professor of accounting and information a sports management at Northwestern University’s Kellogg School of psychologist Management, said in a phone interview that the paper uses Mr. Tangen TrueValue Labs’ ESG sentiment score to determine whether hired ‘to different ESG ratings employed by different firms such as MSCI improve the and Bloomberg can predict ESG news. way we work “Basically, what we find is that the latest ESG ratings do have and help us some predictive ability in terms of predicting true ESG news,” Mr. strengthen Yoon said. mental The paper took into account disagreements between data resilience.’ vendors as well. “Different raters have different predictive ability,” Mr. Yoon said. “We’re using this feature to actually predict future stock returns which I think has a lot of implications to the asset management and also companies and data vendors.” EXTRA HELP Mr. Meland is head engineer for Co-author Mr. Serafaim is professor of business administration the Department of Sport and Social and faculty chairman of the Impact-Weighted Accounts Project at Sciences at the Norwegian School of Harvard Business School. Sport Sciences. Eric Sorensen, PanAgora’s president and CEO, said in a news Norway’s sovereign wealth fund Nicolai Tangen, CEO of NBIM, release announcing the award: “The paper selected as the said in a post on his LinkedIn page Crowell Prize winner this year contributes meaningfully to adds sports psychologist to team that Mr. Meland will work with understanding the factors impacting investment in (ESG) at a NBIM “to improve the way we work time when it is more important than ever to the global invest- The in-house manager of the trillion Norwegian kroner ($1.28 and help us strengthen mental ment community.” world’s largest sovereign wealth trillion) Government Pension Fund resilience. When the focus is more The prize, which has been awarded annually since 2001, is fund is hoping a sports psychologist Global, Oslo, hired Anders Meland to on the investment process than on named for Richard A. Crowell, PanAgora’s founder and a pioneer will help power the performance of further develop the firm’s perfor- the end result, it is easier to go back in the field of quantitative investing. its workforce. mance culture, a spokeswoman said. and analyse your mistakes in a — ROB KOZLOWSKI Norges Bank Investment “Performance is a key priority for structured way.” Management, which runs the 10.91 the fund,” she added. — SOPHIE BAKER /(66216)520 2&,202'(/3$66(6 0$-257(672)*29(51$1&( FREE WEBINAR Feb.10, 2021 | 2:00 PM ET

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21pi0021.pdf RunDate: 02/08/21 Full Page Color: 4/C 10 | February 8, 2021 Pensions & Investments OPINION

Christopher J. Battaglia VP/Group publisher

EDITORIAL Amy B. Resnick Editor (212) 210-0751 Julie Tatge Executive editor (312) 649-5442 Kevin Olsen Managing editor (312) 649-5223 David Schepp News editor Sophie Baker International news editor Peter J. Retzbach Copy desk chief Colette Jordan Copy editor Patrick Roth Web producer Trilbe Wynne Editorial assistant

REPORTERS Douglas Appell International Hazel Bradford Washington James Comtois General assignment Margarida Correia Defined contribution Brian Croce Washington Arleen Jacobius Private equity/real estate Rob Kozlowski General assignment Paulina Pielichata International Robert Steyer Defined contribution Danielle Walker Money management Christine Williamson Money management

ART Gregg A. Runburg Art director Roger Schillerstrom Editorial cartoonist

DATA/RESEARCH Aaron M. Cunningham Director of research and analytics Anthony Scuderi Directory manager Valerie Ge Research analyst EDITORIAL SALES & MARKETING Nikki Pirrello Associate group publisher, conferences and marketing services Julie Parten Head of sales Top 1,000 retirement plans weather storm just fine Lauren DeRiggi Digital specialist/account executive

f you have read the pages of Pensions & Investments over the the woods. Plan sponsors need to keep an even more watchful eye REGIONAL SALES MANAGERS past year, or really any news, you would know the challenges the on the dichotomy of the economy and markets, the vaccination Rich Kiesel West coronavirus pandemic has persistently presented. progress and mutation of the virus, and potential bubbles in several Paul Kissane Midwest But you wouldn’t get the sense that anything was amiss this areas and future inflationary pressures. Anna Koules New York past year by looking at the data P&I collected on the largest But it is encouraging to see the active steps investment teams are Steve Middleton EMEA +44-(0)77-1012-8464 U.S. retirement plans. If anything, it looked like a downright unevent- making in quickly changing markets. This issue of P&I is full of Hideo Nakayama Asia (Tokyo) +81-3-3479-6131; I [email protected] ful year. anecdotes about how chief investment officers and their teams Eduardo de Alcantara Machado Sao Paulo, The resilience of plan sponsors was on full display in 2020. Yes, weathered the storm and struck back after markets bottomed out. Brazil +55-11-3167-0821; [email protected] they were aided by central bank and fiscal policies, but the assets of Several themes of success stood out: Executives didn’t panic, stuck CONFERENCES/MARKETING the 1,000 largest retirement plans grew by 6.6% in the year ended to their long-term plans and acted fast to rebalance and invest in Kimberly Jackson Director of conference sales Sept. 30. Pretty much on par with average years, but pretty unbeliev- emerging opportunities. Diane Pastore Director of conference programming able given where everything stood last March. Taking it beyond P&I’s survey period, it is clear that the year ended Joshua Scott Director of conference programming The past year showed the importance of long-term investing. Dec. 31 was a boon for many plan sponsors. Public pension plans Kathleen Stevens Investor relations director Defined benefit plans were able to test their asset allocations and are announcing huge double-digit returns for 2020, including 15.2% Gerry O’Hara Investor relations manager Michelle DeMarco Director, relationship marketing liquidity buffers while investing opportunistically across a large swath for Wisconsin Retirement System’s $120.1 billion core trust fund. Assel Chanlatte Conference marketing manager of distressed areas in the face of an unpredictable pandemic. The It may have been a roller-coaster ride with big dips and even larger Mirjam Guldemond Conference manager, good news: Plan sponsors passed the test with flying colors and mini- climbs to get to this point, but plan sponsors deserve credit for WorldPensionSummit +31-6-2333-2464 mal pain to their portfolios. The bad news: Plans are still not out of thriving in the most uncertain of times. n Kristal Santos Client services project manager Ashley Perrucci Associate manager, client partnerships Rachel Lopez Conference administrative assistant OTHER VIEWS TERESA GHILARDUCCI CUSTOM CONTENT/CLIENT SOLUTIONS Greg Crawford Director of content solutions Corina Lewis Client solutions senior program manager Lower rates for longer mean a drastic rethink on funding David Joseph Research analyst Tetyana Saucedo Digital campaign manager Deanna Speziale Senior marketing associate lthough President Joe Biden’s worker bargaining power. Teresa Ghilarducci, New administration is raising hopes for Although these lower rates of return on SUBSCRIPTIONS/SITE LICENSES York, is the Bernard L. a substantial stimulus package, financial assets are completely justified from Elayne Glick Director, strategy & business, site and Irene Schwartz license subscriptions economic forecasts are still sour. a macroeconomic perspective, they mean any professor of economics Major banks and the Interna- American saving for retirement will have to David Bomberger Director, enterprise licensing at The New School for tional Monetary Fund are predicting slower save more and that seems really unlikely. As Ed Gorman Director, EMEA/international site A licensing +44-(0)20-3823-9891 Social Research and the economic growth in 2021 so that the recession University of Pennsylvania professor and director of the Schwartz that started in February 2020 is looking more veteran retirement researcher Olivia Mitchell RFP/RECRUITMENT Center for Economic likely to linger. puts it in an excellent 2020 paper, “Building Policy Analysis. Erin Smith Sales manager And even though the average American Better Retirement Systems in the Wake of the household is accumulating cash — average Global Pandemic,” the nation will have to REPRINTS savings rates are sky high, 12.9% in November “rethink” plan contribution rates. Laura Picariello Sales manager — it is more than likely this is savings from workers nor employers will likely increase But rethinking may be optimistic. The cold, ADVERTISING PRODUCTION the first round of stimulus checks and not contributions to make up for lower future hard math of saving for retirement in a Robert T. Hedrick Media services manager long-term savings dedicated to retirement. rates of return. Workers are tapped out and low-return environment seems to make the 312-649-7836; [email protected] There are two signs the typical American employers will not increase the already low whole enterprise a bit hopeless. Subscription information - single copy will be even more worse off in retirement retirement plan coverage at work. They don’t If real returns remain low for years, saving sales: 877-812-1586

than they were before. First, rates of return have to. Employers — many of the most rates for retirement would have to skyrocket TO CONTACT A P&I STAFFER on safe assets are going to remain low for profitable are bigger and stronger— won’t be to make up for the low rates. James Poterba, Unless otherwise noted above, email us at longer as central banks do everything they pressured to increase wages or benefits in Mitsui Professor of Economics at the Massa- [email protected] or find phone numbers at pionline.com/staff. can to prop up the economy. Second, neither the face of lingering unemployment and low SEE GHILARDUCCI ON NEXT PAGE Pensions & Investments February 8, 2021 | 11 OPINION

OTHER VIEWS CHRISTIAN McCORMICK Investors must seriously consider an all-China strategic asset allocation

ith China’s domestic Chinese China view may weight in global firms that trade as Exhibit 1: MSCI EM index leaves investors underweight decide on a larger all- equity indexes A shares. (That China exposure than increasing and persists in other China A shares, overweight large caps the 43.2% in the MSCI its markets benchmarks too, Data are as of Oct. 30. EM index. Wmaturing, U.S. investors — from including the MSCI ■ Finally, some institutions to high-net-worth All Country World Composition of MSCI Comparison of total market investors reduce their individuals — are increasingly index.) So, allocat- Emerging Markets index capitalization exposure* asset allocation asking if they should consider a ing to China by within an ACWI Other China dedicated all-China allocation. tracking bench- 54.8% 14.0% ex-U.S. mandate or 19.7% offshore Megacap Today, most investors are marks is akin to specific Asia-Pacific 38.4% (>USD 49.5% underexposed to Chinese Christian McCor- gaining U.S. equity China 100 regional allocations to equities but there are several mick is a senior exposure by A-Shares billion) better reflect the solutions, among them over- product specialist overweighting 4.8% growing important weighting fast-growing domestic megacaps at the and influence of China China equity at Large cap firms traded as A shares or Allianz Global expense of every- (USD from a capital markets modifying current emerging Investors, Denver. thing else. 33.8% 10-100 and economic market allocations to better China is already billion) 36.5% standpoint, especially reflect China’s improving prospects. 43.2% of the MSCI EM index within the Asia-Pacific Taiwan Small/ Before exploring how to change a (as of Oct. 30) but as the free midcap region, by increasing strategic asset allocation to include an float of A shares increases and Brazil 12.7% the size of the 11.3% (

cancel retirement? than prime age workers. The second of the poverty line, then a person MORE INDUSTRY I think Boston College economists reason it is harsh to cancel retire- could afford, perhaps, a small VIEWPOINTS Ghilarducci Joseph Quinn and Kevin E. Cahill in ment is that Americans already have apartment, enough food and the abil- ■ CONTINUED FROM PREVIOUS PAGE their rethinking about saving for fewer expected retirement years ity to celebrate a friend’s birthday at Paul Rangecroft: retirement speak for many hopeful than almost all workers in rich an Applebee’s a few times a year. Pooled employer plans chusetts Institute of Technology, lawmakers that if people just worked countries. More importantly, people But many can’t even reach that can help level the predicts that contribution rates longer and maybe didn’t retire the who retire voluntarily really like it. modest goal in retirement. My retirement playing field. should be 33% to 48% of earnings to low rates wouldn’t be a problem. They overwhelming enjoy not colleagues and I found in our 2019 ■ Treabhor Mac pay for a lifetime income stream, They propose a golden solution: If working and having time for study that 61% of working married Eochaidh: Where the covering half of workers’ pre-retire- people give up retirement years, themselves before they die. men and 86% of working single wom- LIBOR transition stands ment income (assuming a 4% inadequate retirement balances don’t In our 2018 study with co-authors en aged 62-70 will not have enough — and why it’s OK. investment return, a 2% inflation have to be stretched as much and Siavash Radpour and Tony Webb, we income to meet the modest standards rate and saving for 20 years). If employers will have the comfort of turned over every stone to get an of having $32,920 for a couple or ■ Fred DeSerio: A new workers save for retirement for 40 an expanded labor supply. accurate measure of how much $24,280 for someone living alone. era for manager due years, they need to save 15% to 22% Canceling retirement seems people had to retire on. Only 5% of Another option to huckstering diligence. of pay. I say that is rare — most pretty mean for so many workers people at the very top of the income people into saving more and more See pionline.com/ people would tell me they don’t who don’t have jobs that are distribution had five or more times out of their pay is to rethink how industry-voices know anyone who does. desirable or healthy to be in if you their average pay in their mid-50s. we deliver old age security, including

If investment returns are even are old. Also, the COVID-19 reces- Most of those even at the top won’t an expanded Social Security system To submit an Other Views lower than 4%, saving rates have to sion makes working longer disjoint- come close to having 10 times their or mandatory employer contribu- commentary, email Editor Amy B. Resnick at [email protected], be 50% of pay to generate a payout ed from reality. salary as recommended by Fidelity tions, without forcing Americans to or Managing Editor Kevin Olsen at stream that keeps pace with Older workers face even more Investments and Aon PLC. Changing give up dignified retirement years, or [email protected]. inflation. Since recommending difficulties keeping and finding a job the target income from maintaining the freedom to structure their people save half of their pay for 20 — unemployment rates for the first living standards to something physical, productive and social ac- years is ridiculous — do we now time are higher for older workers smaller and more modest, say 200% tivities before infirmity and death. n 12 | February 8, 2021 Pensions & Investments ESG ROUNDUP

SEC names adviser to concentrate on ESG, climate change

Satyam Khanna was named se- tions caused by the coronavirus nior policy adviser at the SEC in a pandemic, Hortense Bioy, Morning- new position addressing climate star’s director of sustainability re- Activist investors slow their roll in 2020 and ESG issues, acting Chairwom- search, Europe, Middle East and The total number of campaigns waged by core activist investment managers dropped about 20% in an Allison Herren Lee said Feb. 1. Africa and Asia-Pacific, said in a 2020 as well as being down from the levels in the prior three years, although the number is up from a news release. In the position, Mr. Khanna will decade ago. Elliot Management conducted 16 campaigns in 2020, targeting Twitter, SoftBank and advise the Securities and Exchange William Chow, Morningstar’s Commission on ESG issues “and Hong Kong-based director of man- Crown Castle International, among others. Third Point’s suggestion that The Walt Disney Co. suspend advance related new initiatives ager research, said in an interview its dividend and invest heavily in Disney+ garnered a lot of attention. Excess investment returns for across its offices and divisions,” in- that the latest Morningstar data activist investors, as measured by Bloomberg, range widely, from a gain of almost 50% to a loss of cluding reviewing the agency’s reg- only accounts for 60% of Chinese more than 80%. ulations, Ms. Lee said in a state- fund data, which requires a bit ment. She called climate risk and more time to tabulate, so if anything Core campaigns by year 2020 core campaigns by manager other ESG matters “issues of great the numbers announced Jan. 28 un- 180 significance to investors and the derstate the gains sustainable Number of Activist firm campaigns capital markets.” funds posted for the latest quarter. 160 Mr. Khanna was most recently a Looking at year-on-year gains in Elliott Mgmt. 16 resident fellow at NYU School of total sustainable fund assets for the 140 TCI Fund Mgmt. 9 Law’s Institute for Corporate Gov- region, Taiwan’s $2.9 billion as of ernance and Finance and part of the end of 2020 led the way with a 120 Starboard Value 6 President Joe Biden’s transition 336% surge; followed by India, with Stilwell Value 6 team for financial regulators. He is a 210% increase to $1.3 billion; and 100 Oasis Mgmt. 5 returning to the SEC where he was China, up 150% to $18 billion. 80 counsel for former Commissioner Mr. Chow said markets in the Aya Nomura 4 Robert. J. Jackson Jr. and served on region launched 43 new sustain- 60 ValueAct Cap. Partners 4 the agency’s Investor Advisory able funds in 2020, up from 27 the 3 Committee subcommittee for asset year before. 40 Bluebell Cap. Partners owners. CIAM 3 Steven M. Rothstein, managing BlackRock’s Fink urges 20 director of the Ceres Accelerator for Third Point 3 Sustainable Capital Markets, said in net-zero commitments 0 Sandon Capital 3 2010 2011 2015201420132012 2016 2017 20192018 2020 a separate statement that having BlackRock Chairman and CEO Mr. Khanna in the new position is a Laurence D. Fink announced the Source: Bloomberg LP critical step toward mandating cli- money manager is committing to mate risk disclosure and address- achieving net-zero greenhouse gas ing climate change as a systemic fi- emissions by 2050 and is urging individual allocations are not beer proposals from proxies. es for others and then follow out- nancial risk. other companies to do the same. ing disclosed. “Shareholders concerned with dated norms of transparency.” In his annual letter to CEOs re- The move “significantly reduced climate risk need the opportunity to They cite the “reputational dam- NYC pension funds leased Jan. 26, the head of the the carbon footprint of the equity ask their portfolio companies to in- age” of BlackRock’s political action world’s largest money manager funds. The ECB is exploring a pos- crease the scale and pace of their committee donating $85,000 to 15 to divest fossil fuels wrote that the COVID-19 pandemic sible expansion of the use of low- responses to climate change,” the legislators who continued to deny Two of the five pension funds in accelerated sustainable investing, carbon benchmark indices to investors’ letter said. the results of the 2020 presidential the New York City Retirement Sys- with assets in sustainable mutual fixed-income asset classes within “Yet we are aware of currently election even after the invasion of tems will divest an estimated $4 funds and ETFs reaching $288 bil- its pension fund,” a news release pending no-action requests on cli- the Capitol, and said the asset billion in securities related to fos- lion globally as of Nov. 30, up 96% said Jan. 25. mate change shareholder proposals manager’s temporary pause on sil-fuel companies, city officials from Dec. 31, 2019. The bank also said it will use its which raise the same kinds of mi- PAC donations does not mitigate said Jan. 25. Mr. Fink wrote that this “tectonic €20.8 billion funds portfolio, which cromanagement and substantial the damage. Boards of the $77.4 billion New shift ... will accelerate further” and is made up of paid-up capital, the implementation arguments that we Further, payments through trade York City Employees’ Retirement have profound effects on the global general reserve fund and provi- believe wrongly led to exclusion of associations to electoral vote chal- System and the $91.4 billion New investment industry. sions for financial risks, to invest in important climate-change share- lengers present another concern, York City Teachers’ Retirement “The world is moving to net the euro-denominated green bond holder proposals in recent years,” they said. System voted Jan. 25 to approve di- zero, and BlackRock believes that investment fund for central banks, the letter added. “BlackRock’s disclosure of its vestment. They represent the larg- our clients are best served by be- introduced by the Bank for Inter- Pending requests for no-action own activities on its website falls est pension funds within the $239.8 ing at the forefront of that transi- national Settlements. The green letters include a shareholder pro- short of the expectations Black- billion system. tion,” Mr. Fink wrote. “We are car- bond fund invests in renewable posal at Valero asking it to evaluate Rock set for portfolio companies in A third pension fund, the $7.8 bon neutral today in our own energy production, energy effi- its executive remuneration policies December,” the fiduciaries said, billion New York City Board of Edu- operations and are committed to ciency and other environmentally against Climate Action 100 Plus noting that BlackRock ranks below cation Retirement System, is ex- supporting the goal of net zero friendly projects. benchmarks, and a proposal that more than 150 S&P 500 companies pected to vote soon for divestment. greenhouse gas emissions by 2050 asks Exxon Mobil to prepare an au- in the 2020 CPA-Zicklin Index of The city pension funds repre- or sooner.” Investors call for undoing dited report on how a net-zero sce- Corporate Political Disclosure and senting police and firefighters are In the letter, Mr. Fink called on nario would impact its financial Accountability. not participating. companies to “disclose a plan for rules on climate proposals statements. Divestment will be handled over how their business model will be The SEC should repeal guidance Survey says many trustees a five-year period to achieve best compatible with a net-zero econo- that makes it harder for sharehold- BlackRock called out execution, after which the holdings my.” Specifically, he defines this ers to propose climate change ac- ignore climate change and companies will be announced. plan as “one where global warm- tions, several investor groups told over political spending Less than half of U.K. defined ing is limited to well below” 2 de- Acting Chairwoman Allison Herren Nearly two dozen fiduciaries of contribution plan trustees are fo- Record sustainable fund grees Celsius and bringing net Lee in a letter made public Feb. 2. public retirement plans and others cusing on risks and opportunities greenhouse gas emissions to zero At issue is the no-action process, expressed concern over Black- stemming from climate change, ac- flows reported for Asia by 2050. in which officials within the SEC’s Rock’s internal practices and cording to an annual survey by The Morningstar Asia reported a re- The letter also argues for a single division of corporation finance re- stewardship stances on compa- Pensions Regulator. cord $5 billion in inflows to sustain- global standard of disclosure. spond to a company’s request to ex- nies’ political spending and lobby- The survey, conducted by the able funds in Asia for the fourth clude a shareholder proposal from ing activity. pensions watchdog between Janu- quarter 2020, boosting ESG asset ECB considers going its proxy statement and ballot. In a letter to BlackRock Chair- ary and March 2020, found that 43% totals to $25.4 billion by year-end, Division staff guidance issued man and CEO Laurence Fink, the of 216 single-employer and multi- up 131% over the past 12 months. greener in staff fund through no-action letters to compa- state treasurers and trustees of employer plans consider climate Sustainable funds offered to The European Central Bank is nies during the last four years “have public pension funds and retire- change in their investment strate- mainland Chinese investors ac- considering moving to the use of undercut the ability of sharehold- ment savings with a collective $1 gies, up from 21% in 2019. counted for $3.9 billion, or 77% of low-carbon benchmark indexes for ers to file proposals seeking corpo- trillion in assets said the events of Among trustees that did not con- the total, followed by South Korean fixed-income allocations within its rate emissions and target-setting Jan. 6 that included an assault on sider climate change, 19% said they funds, with $574 million; Indian staff pension fund. data to address the climate crisis,” the U.S. Capitol “add greater ur- were planning to review the posi- funds, with $497 million; and Tai- The Frankfurt-based ECB last said a letter from the Interfaith gency to concerns and expecta- tion while 21% said climate change wanese funds, with $103 million. year replaced all conventional eq- Center on Corporate Responsibility, tions regarding corporate political was not relevant to their plan. The remainder was made up of uity benchmark indexes tracked by the Shareholder Rights Group, US spending and lobbying transpar- However, under the upcoming other countries in the region. the pension fund with low-carbon SIF and Ceres. ency and practices.” Pension Schemes Bill, trustees will The latest inflow numbers point equivalents. The fund has €1.3 bil- The groups contend that division The signatories call for Black- be required to deliver effective to growing investor interest in “sus- lion ($1.6 billion) in assets and €2.5 officials changed SEC policy by re- Rock to reform its own corporate management of climate change tainable and resilient business billion in obligations. interpreting legal concepts to allow practices and to set a leading ex- risks and opportunities regardless models” in the wake of the disrup- A spokeswoman said the size of companies to omit more sharehold- ample, “not to set out those practic- of their sector. 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J FOR JOBS: Separate Account J (“the Fund”) is offered through a group annuity contract issued by The Union Labor Life Insurance Company sophisticated investors who are willing to bear the high risks of such an investment, which include, but are not limited to, lack of (“Union Labor Life”) and is sold through Ullico Investment Company, LLC (Member FINRA/SIPC), both subsidiaries of Ullico Inc. liquidity, restrictions on transferring ownership to the Fund, absence of information regarding valuation and pricing, and high The Fund will only be offered to qualified institutional and accredited investors. Investments in commercial mortgage loans fees and expenses. Potential investors in the Fund should carefully read the Confidential Private Placement Memorandum for a secured by illiquid real estate are subject to additional risks including the potential inability of an investor to redeem units. The description of the potential risks associated with investment in the Fund. investment return and principal value of the Fund will fluctuate so that an investor’s units, when redeemed, may be worth more or less than original cost. In addition, fluctuations in interest rates and market volatility may limit available financing for real COLLECTIVE INVESTMENT FUND: estate investments held by the Fund, thereby adversely affecting the value of the underlying investments, the investment return The CIF is sponsored by Hand Benefits & Trust Company, a BPAS company, the trustee and is not a mutual fund. Its shares are not and the liquidity of the investments. deposits of Hand Benefits & Trust or Ullico Investment Advisors, and are not insured by the Federal Deposit Insurance Corporation or any other agency. The CIF is a security which has not been registered under the Securities Act of 1933 and is exempt from ULLICO INFRASTRUCTURE FUNDS: investment company registration under the Investment Act of 1940. The Ullico J for Jobs Collective Investment Fund is new and UIF is managed by Ullico Investment Advisors, Inc. (“UIA”) and is sold through Ullico Investment Company, LLC (Member FINRA/ has a limited performance track record. Diversification may not protect against market risk. There are risks involved with investing, SIPC), both subsidiaries of Ullico Inc. UIA is a registered investment adviser with the SEC under the Investment Advisers Act of 1940, including possible loss of principal. Before investing in any investment portfolio, the client and the financial professional should as amended (“Act”). UIF will only be sold to “accredited investors” as that term is defined in Regulation D of the Securities Act of carefully consider client investment objectives, time horizon, risk tolerance, and fees. This collective investment fund is available for 1933. Investment in infrastructure is speculative, not suitable for all investors, and should be undertaken only by experienced and investment by eligible qualified retirement plan trusts only.

21pi0017.pdf RunDate: 02/08/21 Full Page Color: 4/C 14 | February 8, 2021 Pensions & Investments THE LARGEST RETIREMENT FUNDS

What’s inside THE FUNDS The largest retirement funds/sponsors 16 Assets of the Top 200 funds by category 19 Assets of the Top 200 funds by type 20 Average asset mixes 22 Aggregate asset mixes 24 Funds among the Top 200 using strategy cited 26 How the data were compiled 27

DEFINED BENEFIT DB assets by investment vehicle 26 Funds with DB assets in hybrid plans 26 Funds with the most DB assets managed internally 26 Funds with the most DB assets in: In ation-protected securities 26 LDI strategies 26 Factor-based strategies 26 Domestic equity 28 Non-U.S. equity 28 Global equity 28 Developed markets equity 28 Emerging markets equity 28 Domestic xed income 29 Global/non-U.S. xed income 29 Developed markets xed income 29 Emerging markets xed income 29 REITs 29 High-yield securities 29 Bank loans 29 Growth of LDI strategies in DB plans 26 Growth of in ation-protected securities in DB plans 27 Growth of public vs. corporate DB plans 27 Funds with DB plans using ESG factors 30 Funds with DB assets invested under ESG principles 30 Funds with DB plans using hiring policy for WMDV-owned managers 30 Funds with DB assets managed by WMDV-owned managers 30 Funds with DB plans using an external cybersecurity vendor 31

DEFINED CONTRIBUTION The largest DC funds by type 32 Funds with the most DC assets in: Target-date strategies 32 Passive equity 33 REITs 33 Growth of target- date strategies in DC plans 32 Ana Garcia Bernaus Growth of 457 assets in DC plans 32 Growth of passive xed income in DC plans 32 Change in assets by category Funds with DC plans offering auto Assets are in billions for years ended Sept. 30. enrollment 32 Funds with DC plans offering auto TOP 1,000 FUNDS TOP 200 FUNDS TOP 200 TOP 200 TOP 200 TOP 200 escalation 33 PUBLIC FUNDS CORPORATE MISCELLANEOUS UNION FUNDS FUNDS FUNDS Funds with DC plans offering white-label $12,092.2 options 33 $11,346.3 Funds with DC plans offering stand-alone $11,008.2 retirement income options 33 Funds with DC plans offering an ESG focus 33

ALTERNATIVES $8,690.6 $8,184.1 Funds with the most DB assets in $7,930.7 alternatives 31 Funds with the most DB assets in hedge funds 31 Growth of alternative investments in DB plans 15 Growth of hedge fund assets in DB plans 30 $3,090.7 Growth of infrastructure assets $2,809.7 $2,899.7 in DB plans 30 $4,330.0 Growth of real estate equity $4,113.6 in DB plans 30 $4,040.9 Growth of private equity in DB plans 30

$1,126.0 MORE ONLINE $934.3 $1,019.5 To view the complete report, including a full data set, go to pionline.com/ $145.8 $151.3 $143.9 sponsors21 2018 2019 2020 2018 2019 2020 2018 2019 2020 2018 2019 2020 2018 2019 2020 2018 2019 2020 Pensions & Investments February 8, 2021 | 15 THE LARGEST RETIREMENT FUNDS The 2021 P&I 1000 at a glance Assets are in billions as of Sept. 30.

2020 One-year Five-year 2020 One-year Five-year 2020 One-year Five-year assets change change assets change change assets change change

Top 1,000 assets $12,092.2 6.6% 36.7% REITs $28.0 -19.8% 19.7% Private credit/debt $50.2 93.1% N/A High yield $81.2 2.3% 0.2% Energy $24.1 -21.8% 69.7% Defined benefit $7,421.9 5.0% 27.3% Bank loans $12.7 -3.1% N/A Infrastructure $41.3 21.5% 147.3% Defined contribution $4,670.3 9.2% 54.9% Inflation-protected securities $56.3 -11.6% -25.3% Hybrid plans $166.1 -14.5% -5.0%

Top 200 assets $8,690.6 6.2% 35.9% Cash $105.6 21% 71.2% Employer contributions $143.3 5.3% 26.3%

Top 100 assets $7,030.6 6.0% 34.3% Domestic active equity $307.9 -5.3% -22.2% Benefits paid $262.1 -1.3% 7.5% Domestic active fixed income $846.1 5.3% 23.7% Top 50 assets $5,498.0 6.6% 35.8% Passive domestic equity $657.9 5.8% 21.6% Top 200 DC plans Top 25 assets $3,992.6 6.3% 34.8% Passive domestic fixed $147.8 7.1% 49.9% Passive equity $577.5 7.1% 55.6% income Top 200 DB $5,876.7 5.1% 28.3% Passive fixed income $72.3 22.1% 44.9% Non-U.S. active equity $423.9 0.3% 8.1% Top 200 DC $2,813.9 8.6% 55.1% REITs $4.0 -18.4% -24.5% Global/non-U.S. active fixed $79.0 -3.8% 21.7% income Inflation-protected securities $9.8 10.1% 53.1% Global equity (active $312.4 34.8% 122.0% Commodities $1.2 -29.4% 50.0% Top 200 DB plans & passive) Target-date strategies* $337.2 3.2% 93.8% Internally managed* $1,448.2 2.1% 40.2% Emerging markets (active $212.5 1.5% 42.0% & passive) Custom $238.8 0.0% 83.3% Domestic equity (active $570.5 10.2% 32.1% & passive) Equity $177.5 5.0% 39.4% Off-the-shelf $60.6 -6.2% 114.9% Domestic fixed income -12.9% 56.3% $447.4 2.1% 27.6% Debt $35.0 Contributions $63.7 2.1% 12.5% (active & passive) Factor-based equity $98.9 -0.7% N/A Employer $18.7 -1.6% 9.4% Non-U.S. equity (active $205.8 6.2% 55.3% & passive) LDI investments $140.4 27.9% 71.8% Employee $45.0 3.7% 13.9% Global/non-U.S. fixed income Hedge funds $147.8 -4.6% -8.4% $25.8 -8.5% 760.0% 401(k) $544.0 -18.8% 7.8% (active & passive) Direct investments $128.4 -4.5% -1.8% Profit sharing $17.5 -26.5% 116.0% Global equity (active & $51.5 1.0% 890.4% passive) Funds of funds $19.4 -4.9% -36.8% ESOP $15.3 -37.6% 23.4%

Alternative investments $55.8 3.3% 82.4% Commodities $17.7 14.9% -16.9% 457 $146.4 9.3% 56.4%

Passive equity $1,048.9 11.1% 28.9% Private equity $438.5 9.6% 35.4% 401(a) $93.1 28.2% 78.7%

Passive fixed income $152.5 4.9% 50.4% Venture capital $45.4 5.6% 23.4% 403(b) $74.5 44.9% 92.5%

Enhanced indexed equity $45.2 9.7% -10.8% Buyouts $258.3 17.8% 46.1% Other DC $667.2 8.5% 48.3% Enhanced domestic indexed Mezzanine $3.8 15.2% -42.4% $35.3 0.0% -32.1% *Total is greater because some funds did not provide breakouts. Historical data fixed income may include retroactive updates. Distressed debt $16.9 -9.6% -36.2% Real estate equity $369.0 4.0% 22.7%

THE P&I 1000 ALTERNATIVES THE P&I 1000 DC PLANS Growth of alternative investments in DB plans Equity gains propel Private credit, infrastructure lead Among the top 200 funds; assets are in billions as of Sept. 30. pack with double-digit increases $1,500 457 plans, but future $1,400 $1,300 By ARLEEN JACOBIUS THE DATA $1,200 growth is hampered $1,100 Investor views of some alternative in- Data on alternatives begin on page 30. $1,000 vestments altered by the COVID-19 crisis $900 By ROBERT STEYER and persistent low interest rates appear to billion, real estate investment trusts down $800 have affected the holdings of the 200 larg- 19.8% to $28 billion, and energy dropping $700 Deferred compensation plans grew by 9.3% during est retirement plans in Pensions & Invest- 21.8% to $24.1 billion. $600 the 12 months ended Sept. 30, as sponsors and other ments’ annual survey. “Clients swapped out listed infrastruc- $500 DC plan members cheered the stock market’s come- Aside from private credit assets, which ture or REITs for something more direct $400 back and praised the resilience of participants but also nearly doubled in the 12 months ended Sept. in nature such as infrastructure,” said John $300 lamented a lack of legislation that could further propel 30, the asset class with the largest increase Delaney, Philadelphia-based senior director, $200 participation and account balances. was infrastructure, up 21.5% to $41.3 billion. investments at Willis Towers Watson PLC. $100 “The markets are do- But compared to infrastructure, other However, when viewed over longer $0 ing great” in rebound- THE DATA real asset sectors languished, with real es- time horizons, both real estate sectors wit- 2015 2016 2017 20192018 2020 ing from the pandemic- Data on DC plans begin tate equity eking out a 4% increase to $369 SEE ALTERNATIVES ON PAGE 30 induced plunge during on page 32. the rst quarter of 2020, said James Potvin, exec- THE P&I 1000 HAWAII RETIREMENT utive director of the Employees Retirement Systems of Georgia, Atlanta, who administers a deferred compensation plan with $646 million in assets and a 401(k) plan with $1.3 billion in assets as of Sept. 30. Hawaii fund avoids pigeonholes and goes its own way “Overall, plan participation was pretty stable,” he added. “Member contribution rates remained pretty By ROB KOZLOWSKI eschew traditional asset classes and are The targets created at the time were level throughout the summer. When the stock market unable to break down their assets the 76% broad growth, consisting of growth- dropped in February and March, I was afraid that we When Pensions & Investments sends way our survey asks. oriented (75% domestic, international would get some panic selling out of some equity funds, its annual survey to the 1,000 largest U.S. One such plan is the $18 billion Ha- and global equity), stabilized growth but it bounced back so quickly that the response was retirement plans, we ask for breakdowns waii Employees’ Retirement System, (15% covered calls and credit) and pri- muted, as well.” by traditional asset classes like equities, Honolulu. In 2014, under then-Chief vate growth (10% private equity); 12% The assets of deferred compensation plans among xed income and alternatives. Investment Of cer Vijoy Chattergy, the principal protection, consisting of 60% the 200 largest U.S. retirement plans rose to $146.4 bil- Not every plan structures their alloca- pension fund shifted to a risk-based as- international xed income and 40% dom- lion as of Sept. 30 from $133.9 billion the year earlier, tions the same, however, and some even set allocation. SEE HAWAII ON PAGE 27 SEE DC PLANS ON PAGE 32 16 | February 8, 2021 Pensions & Investments THE LARGEST RETIREMENT FUNDS

The largest retirement funds/sponsors Ranked by total assets, in millions, as of Sept. 30.

DB ASSET MIX 2019 Total DB Total DC Fixed Rank rank Sponsor Assets Change assets assets Equity income Cash Other Key person

1 1 Federal Retirement Thrift $651,124 8.3% $651,124 Sean McCaffrey, CIO 2 2 California Public Employees $426,247 10.9% $424,306 $1,941 50.4% 29.9% 1.1% 18.6% Dan Bienvenue, Interim CIO & Deputy CIO-Total Portfolio (DB); Christine Reese (DC) 3 3 California State Teachers $259,246 6.5% $257,856 $1,390 49.2% 15.5% 3.0% 32.3% Christopher Ailman, CIO (DB); Sandy Blair, Director-Retirement Readiness (DC) 4 4 New York State Common $226,400 5.1% $226,400 53.4% 21.1% 1.7% 23.8% Anastasia Titarchuk, CIO 5 5 New York City Retirement $225,450 8.2% $225,450 49.4% 31.9% 1.9% 16.8% Alex Done, Deputy Comptroller-Bureau of AM & CIO 6 6 Florida State Board $180,221 3.7% $168,002 $12,219 55.6% 17.3% 1.5% 25.6% Ash Williams, Executive Director & CIO (DB); Daniel Beard, Chief of DC Programs (DC) 7 7 Texas Teachers $162,656 3.2% $162,656 40.0% 14.7% 1.3% 44.0% Jase Auby, CIO 8 8 Boeing $133,688 3.2% $64,172 $69,516 Andrew Ward, VP & CIO 9 10 Washington State Board $128,897 7.4% $107,257 $21,640 33.1% 20.9% 0.2% 45.8% Allyson Tucker, CIO 10 9 AT&T $127,365 1.4% $58,822 $68,543 11 12 Wisconsin Investment Board $124,508 6.5% $118,029 $6,479 50.0% 26.0% 24.0% David Villa, Executive Director & CIO (DB); Shelly Schueller, Director-Deferred Compensation (DC) 12 11 New York State Teachers $122,767 2.6% $122,767 57.4% 23.5% 3.5% 15.6% Thomas K. Lee, Executive Director & CIO 13 13 North Carolina $120,727 5.3% $107,497 $13,230 33.6% 29.0% 11.0% 26.4% Christopher Morris, Co-CIO (DB); Loren De Mey, Assistant Director (DC) 14 14 IBM $109,027 3.1% $53,421 $55,606 8.2% 81.2% 10.6% Rick Klutey, Managing Director & CIO 15 15 Ohio Public Employees $104,307 2.4% $102,410 $1,897 44.0% 27.7% 1.0% 27.3% Paul Greff, CIO 16 16 California University $103,107 8.0% $74,514 $28,593 60.6% 17.8% 0.5% 21.1% Jagdeep Singh Bachher, CIO & VP-Investments 17 35/51 Raytheon Technologies $99,717 68.9% $51,442 $48,275 34.0% 44.0% 22.0% Robin L. Diamonte, VP & CIO 18 18 Virginia Retirement $90,111 3.9% $85,136 $4,975 28.4% 28.3% 2.6% 40.7% Ronald D. Schmitz, CIO (DB); Laura Pugliese, Portfolio Manager-DC Plans (DC) 19 17 General Motors $87,325 0.5% $61,602 $25,723 20 19 Michigan Retirement $86,659 3.3% $76,416 $10,243 37.7% 12.4% 4.7% 45.2% Jon M. Braeutigam, CIO 21 24 Lockheed Martin $86,317 8.6% $39,365 $46,952 Paul Colonna, President & CIO-LMIMCO 22 22 Minnesota State Board $85,722 6.1% $74,762 $10,960 59.4% 19.5% 5.3% 15.8% Mansco Perry III, Executive Director & CIO 23 26 Georgia Teachers $85,027 7.9% $85,027 71.1% 28.1% 0.8% Charles W. Cary Jr., CIO 24 20 New Jersey $83,126 0.2% $78,354 $4,772 47.3% 22.5% 5.6% 24.6% Corey Amon, Director 25 21 Oregon Public Employees $82,860 0.6% $80,251 $2,609 31.1% 21.7% 47.2% Rex Kim, CIO (DB); Michael Viteri, Sr. Public Equity Investment Officer (DC) 26 29 Kaiser $82,516 20.3% $51,980 $30,536 38.0% 32.0% 8.0% 22.0% Vyvian Heath, Sr. Mgr.-Fixed Income (DB); Rajiv Mathur, Exec. Dir.-Public Equities, DC Plans & Inv. Oper. (DC) 27 23 General Electric $80,699 1.4% $56,351 $24,348 39.0% 42.0% 1.0% 18.0% Harshal Chaudhari, Deputy Treasurer & CIO-Global Pensions 28 25 Ohio State Teachers $80,108 1.4% $78,179 $1,929 52.2% 20.1% 1.7% 26.0% William J. Neville, Executive Director 29 27 Massachusetts PRIM $79,525 4.6% $79,525 43.1% 21.6% 0.4% 34.9% Michael G. Trotsky, Executive Director & CIO 30 28 United Parcel Service $75,438 4.4% $49,388 $26,050 35.1% 43.2% 2.6% 19.1% Ernie Caballero, CIO 31 30 United Nations Joint Staff $73,750 8.8% $73,750 57.4% 28.2% 2.2% 12.2% Pedro Guazo, Representative of the Secretary-General OIM 32 31 Ford Motor $65,755 4.4% $46,655 $19,100 Erin Rohde, CIO 33 33 Tennessee Consolidated $65,692 8.1% $55,940 $9,752 49.6% 25.7% 0.9% 23.8% Michael Brakebill, CIO (DB); Hunter Bethea, Director-Deferred Compensation (DC) 34 32 Bank of America $63,730 2.5% $21,135 $42,595 27.8% 67.7% 0.1% 4.4% David Andreasen, Director & Senior VP-Retirement Plan Investments 35 34 Northrop Grumman $62,731 5.0% $32,129 $30,602 41.7% 29.5% 4.4% 24.4% Raj Chandhok, VP-Investments & Trust Administration (DB); Johnett Ryans, Director-Investments & Trust (DC) 36 36 Los Angeles County Employees $60,459 2.8% $60,459 36.4% 29.4% 1.6% 32.6% Jonathan I. Grabel, CIO 37 37 Pennsylvania School Employees $58,741 1.3% $58,721 $20 19.7% 28.7% -11.0% 62.6% James H. Grossman Jr., CIO (DB); Jennifer Mills, Deputy Exec. Director & Director of DC Investments (DC) 38 40 Wells Fargo $58,709 9.3% $11,279 $47,430 Thomas B. Hooley, Senior VP & Managing Director 39 39 Colorado Employees $58,113 7.9% $53,068 $5,045 57.8% 21.5% 0.5% 20.2% Amy C. McGarrity, CIO 40 38 Maryland State Retirement $57,343 5.9% $57,343 36.5% 26.4% 0.6% 36.5% Andrew Palmer, CIO 41 41 Verizon $54,477 2.4% $18,853 $35,624 Brady Connor, President & CIO-VIMCO 42 42 Illinois Teachers $53,470 2.3% $53,470 33.2% 20.5% 2.4% 43.9% Stan Rupnik, Interim Executive Director & CIO 43 43 FedEx $52,395 12.7% $26,978 $25,417 44 46 Nevada Public Employees $48,995 9.8% $48,995 62.3% 25.9% 1.0% 10.8% Steve Edmundson, CIO 45 44 J.P. Morgan Chase $48,263 5.7% $17,401 $30,862 Ameeta Gosain, CIO-DB Plan (DB); Daniela Nese (DC) 46 45 Missouri Schools & Education $47,490 5.0% $47,490 43.3% 22.5% 1.4% 32.8% Craig A. Husting, CIO 47 48 Illinois Municipal $45,179 5.9% $45,179 59.9% 26.8% 0.6% 12.7% Brian Collins, Executive Director & Interim CIO 48 50 State Farm $44,675 8.6% $30,442 $14,233 49 47 Teamsters, Western Conference $44,102 0.2% $44,102 41.0% 30.0% 1.0% 28.0% Alan D. Biller, CEO-Alan Biller and Associates 50 53 Utah State Retirement $43,025 8.1% $36,224 $6,801 Daniel D. Andersen, Executive Director 51 55 Johnson & Johnson $42,752 9.1% $22,457 $20,295 Neil Roache, CIO 52 54 Delta Air Lines $42,748 8.9% $16,111 $26,637 Jon Glidden, Managing Director-Pension Investments 53 49 Arizona State Retirement $42,192 1.9% $42,192 42.4% 8.8% 2.6% 46.2% Paul Matson, Executive Director & Acting CIO 54 52 Alabama Retirement $41,418 2.8% $38,964 $2,454 64.5% 13.7% 8.3% 13.5% David G. Bronner, CEO 55 56 South Carolina Public Employees $40,013 2.5% $32,491 $7,522 46.6% 23.1% 4.8% 25.5% Geoffrey Berg, CIO 56 58 Indiana Public Retirement $38,591 5.3% $32,250 $6,341 23.0% 26.2% 1.5% 49.3% Scott Davis, CIO 57 57 Nokia USA $38,261 2.9% $29,461 $8,800 John Hickey, VP-Global Benefits 58 59 Connecticut Retirement $37,717 5.0% $37,717 42.6% 33.0% 2.1% 22.3% Shawn T. Wooden, State Treasurer 59 62 Alaska Retirement $35,567 5.0% $27,975 $7,592 49.4% 21.4% 1.1% 28.1% Zachary Hanna, CIO 60 63 Pennsylvania Employees $35,477 7.0% $31,464 $4,013 43.8% 31.2% 2.7% 22.3% Seth A. Kelly, CIO (DB); Alicia James, CFO (DC) 61 60 Honeywell $35,396 -0.9% $20,416 $14,980 27.0% 56.0% 3.0% 14.0% Harsh Bansal, VP-Investments 62 65 Exxon Mobil $34,219 5.6% $14,180 $20,039 H.M. Comer, Manager-Benefits Finance & Investment 63 61 Iowa Public Employees $34,006 0.0% $34,006 38.5% 30.6% 1.2% 29.7% Karl C. Koch, CIO 64 64 Walmart $33,930 2.6% $33,930 Adam Stavisky, Senior VP-U.S. Benefits 65 66 American Airlines $33,748 4.6% $12,223 $21,525 53.1% 33.1% 13.8% Ken Menezes, Managing Director-AM, F&E, CI&R 66 69 Pfizer $33,605 8.9% $16,409 $17,196 67 79 Federal Reserve Employees $33,516 23.7% $22,835 $10,681 47.0% 45.0% 8.0% William G. Clark, CIO Pensions & Investments February 8, 2021 | 17 THE LARGEST RETIREMENT FUNDS

DB ASSET MIX 2019 Total DB Total DC Fixed Rank rank Sponsor Assets Change assets assets Equity income Cash Other Key person

68 68 Texas Employees $32,906 3.0% $29,076 $3,830 42.0% 23.0% 2.0% 33.0% Tom Tull, CIO (DB); Nora Alvarado, Director-Voluntary Income Plans (DC) 69 67 Texas County & District $32,368 0.8% $32,368 31.0% 30.0% 4.0% 35.0% Casey Wolf, CIO 70 71 San Francisco City & County $32,235 7.0% $28,198 $4,037 29.7% 9.2% 3.7% 57.4% William J. Coaker Jr., CIO (DB); Diane Chui Justen, DC Plan Manager (DC) 71 70 Mississippi Employees $31,874 4.4% $29,872 $2,002 61.0% 20.0% 2.0% 17.0% Robert Clark, CIO 72 73 Chevron $30,408 5.2% $10,974 $19,434 73 74 General Dynamics $30,169 5.2% $13,703 $16,466 74 72 Texas Municipal Retirement $29,989 0.0% $29,989 29.8% 15.9% 5.1% 49.2% T.J. Carlson, CIO 75 78 CVS Health $29,731 8.8% $6,986 $22,745 Carol A. DeNale, SVP & Treasurer 76 76 Caterpillar $29,582 6.4% $16,620 $12,962 30.3% 68.2% 0.7% 0.8% Martin Rumbold, Defined Benefit Manager (DB); Trisha Romero (DC) 77 81 Shell Oil $29,012 10.5% $16,865 $12,147 78 75 Exelon $28,910 3.9% $19,282 $9,628 32.0% 42.0% 1.0% 25.0% Douglas Brown, SVP & CIO 79 85 New York State Deferred Comp. $28,804 12.0% $28,804 David E. Fischer, Executive Director 80 77 Citigroup $28,324 2.8% $12,869 $15,455 16.1% 54.3% 2.9% 26.7% Pantelis Apessos, Managing Dir.-Strategy & Invest. (DB); Leonardo Rodriguez, Dir. & Sr. Invest. Officer (DC) 81 82 3M $27,709 5.6% $17,016 $10,693 82 87 Microsoft $27,668 9.8% $27,668 George Zinn, Corporate VP & Treasurer 83 83 FCA U.S. $27,024 4.4% $18,818 $8,206 84 84 United Airlines Holdings $26,600 2.8% $3,700 $22,900 Eric Harder, Managing Director-Corporate Finance 85 89 PepsiCo $26,558 6.8% $14,872 $11,686 86 88 Walt Disney $26,420 6.1% $15,216 $11,204 Lawrence Goldsmith, VP-Pension & Investments 87 80 Dow $26,418 -1.5% $15,098 $11,320 88 94 PG&E $26,322 11.4% $19,435 $6,887 Ted Huntley, Director 89 90 National Electric $25,610 6.6% $15,416 $10,194 52.0% 23.3% 0.8% 23.9% Monte Tarbox, Executive Director-NEBF Investments (DB); Kevin McCormack, Senior Investment Officer (DC) 90 93 Los Angeles Fire & Police $25,319 5.8% $25,319 50.9% 21.3% 5.4% 22.4% Tom Lopez, CIO 91 92 Illinois State Board $24,561 2.5% $19,803 $4,758 47.7% 31.3% 0.7% 20.3% Johara Farhadieh, Executive Director & CIO 92 86 National Railroad $24,508 -3.5% $24,500 $8 William J. Carr III, CEO & CIO 93 102 Intel $24,438 13.6% $1,602 $22,836 94 100 New York City Deferred Comp. $24,191 9.2% $24,191 Georgette Gestely, Director 95 91 Corteva $23,939 -0.1% $16,874 $7,065 36.6% 49.4% 14.0% Valerie J. Sill, President & CEO-DuPont Capital 96 96 Procter & Gamble $23,883 3.8% $1,886 $21,997 97 95 World Bank $23,814 1.5% $23,814 John F. Gandolfo, Director & CIO 98 97 Louisiana Teachers $23,543 2.7% $21,146 $2,397 46.1% 16.5% 0.9% 36.5% Philip Griffith, CIO (DB); Davorio D. Stevenson, Director-Investment Operations (DC) 99 99 Illinois State Universities $23,470 5.9% $20,450 $3,020 40.1% 30.1% 2.0% 27.8% Martin Noven, Executive Director 100 98 Merck $23,108 1.4% $11,408 $11,700 59.9% 38.9% 1.2% Timothy Dillane, Executive Director-Pension Investments 101 109 Costco Wholesale $23,000 15.0% $23,000 Jay Tihinen, AVP-Benefits 102 SUNY $23,000 $23,000 Michael Consorte, Director-Universitywide Benefits 103 115 L3Harris Technologies $22,758 15.9% $8,778 $13,980 104 106 Deloitte $22,634 9.0% $7,186 $15,448 Mary Ellen Stocks, CIO 105 101 Prudential Financial $22,502 1.9% $13,649 $8,853 8.3% 64.1% 0.5% 27.1% Gail Maytin, CIO 106 105 CommonSpirit Health $22,496 8.3% $9,123 $13,373 Alyssa Rieder, VP & CIO 107 176/322 Truist Financial $22,389 74.8% $13,745 $8,644 Jeffrey J. Schappe, CIO 108 103 Kansas Public Employees $22,387 4.1% $21,135 $1,252 Elizabeth Miller, CIO (DB); Arlen Zentner, DC Plan Officer (DC) 109 243 Ascension $21,850 8.8% $8,183 $13,667 David Erickson, CIO 110 119 Duke Energy $21,813 16.8% $12,302 $9,511 111 108 Deere $21,710 8.0% $12,950 $8,760 Jeffrey A. Trahan, VP-Pension Fund & Investments 112 113 Abbott Laboratories $21,693 9.6% $9,934 $11,759 113 107 Kentucky Teachers $21,647 7.5% $21,647 61.8% 15.2% 2.9% 20.1% Gary Harbin, Executive Secretary 114 112 Southern Co. $21,577 8.3% $13,729 $7,848 115 116 Ernst & Young $21,377 8.9% $8,761 $12,616 Walter Kress, CIO 116 111 National Rural Electric $21,298 6.8% $9,062 $12,236 61.0% 25.0% 1.0% 13.0% John Szczur, VP-Investment Strategy & Performance 117 110 Wespath (UMC) $21,154 5.9% $9,489 $11,665 42.4% 48.1% 9.5% David Zellner, CIO 118 120 FMR $21,026 13.6% $21,026 119 114 Consolidated Edison $20,777 5.8% $16,062 $4,715 44.2% 38.1% 0.3% 17.4% Robert Hoglund, SVP & CFO 120 104 HP $20,067 -6.0% $10,463 $9,604 121 117 Operating Engineers International $20,043 5.9% $20,043 55.0% 27.5% 17.5% Michael Crabtree, CEO 122 118 Idaho Public Employees $19,883 5.7% $18,717 $1,166 61.3% 26.8% 0.9% 11.0% Robert M. Maynard, CIO 123 122 Los Angeles City Employees $19,228 6.0% $19,228 56.1% 26.0% 0.9% 17.0% Rodney L. June, CIO 124 133 Oracle $18,543 12.7% $18,543 Peter Shott, VP-Human Resources 125 121 Georgia Employees $18,368 0.6% $16,294 $2,074 61.0% 26.8% 12.2% Charles W. Cary Jr., CIO (DB); Jim Potvin, Executive Director (DC) 126 125 HCA Holdings $18,277 4.4% $653 $17,624 127 138 Mass General Brigham $18,192 13.1% $7,405 $10,787 128 127 Nebraska Investment Council $18,127 5.0% $17,177 $950 Michael Walden-Newman, State Investment Officer 129 129 MetLife $18,072 7.0% $10,437 $7,635 7.9% 82.6% 1.7% 7.8% 130 126 Hawaii Employees $18,010 3.4% $18,010 51.4% 13.8% 2.9% 31.9% Elizabeth Burton, CIO 131 128 Oklahoma Teachers $17,932 4.0% $17,778 $154 61.4% 21.1% 1.5% 16.0% Tom Spencer, Executive Director 132 161 Alphabet $17,894 32.8% $17,894 133 123 CenturyLink $17,862 -0.8% $10,369 $7,493 18.0% 60.5% 21.5% 134 130 Orange County $17,741 5.9% $17,741 41.7% 15.9% 1.0% 41.4% Molly A. Murphy, CIO CONTINUED ON PAGE 18 18 | February 8, 2021 Pensions & Investments THE LARGEST RETIREMENT FUNDS

The largest retirement funds/sponsors Ranked by total assets, in millions, as of Sept. 30.

DB ASSET MIX 2019 Total DB Total DC Fixed Rank rank Sponsor Assets Change assets assets Equity income Cash Other Key person

135 137 Liberty Mutual $17,699 9.9% $8,954 $8,745 136 131 Koch Industries $17,508 4.8% $7,042 $10,466 137 142 International Paper $17,471 9.3% $11,277 $6,194 138 132 Eli Lilly $17,293 5.0% $9,637 $7,656 21.5% 7.8% 15.6% 55.1% Susan Ridlen, Assistant Treasurer 139 141 New York City MTA $16,810 5.0% $9,134 $7,676 140 145 Los Angeles County Deferred $16,759 9.2% $16,759 Teresa Gee, DC Plan Investment Manager 141 140 New York City Teachers $16,723 4.4% $16,723 Susan Stang, Director-Investment Administration 142 139 West Virginia Investment $16,714 4.2% $16,714 51.1% 13.2% 0.2% 35.5% Craig Slaughter, Executive Director & CIO 143 147 California Savings Plus $16,678 9.7% $16,678 Michelle Berklacich, Administrator 144 124 Arkansas Teachers $16,665 -5.2% $16,665 52.8% 13.7% 1.2% 32.3% Rod Graves, Deputy Director 145 136 Mayo Clinic $16,500 1.5% $9,500 $7,000 146 146 Los Angeles Water & Power $16,424 7.8% $16,424 51.9% 25.3% 0.8% 22.0% Jeremy Wolfson, CIO 147 303 Providence Health $16,400 14.1% $1,600 $14,800 46.6% 33.7% 1.3% 18.4% Alec Stais, CIO 148 156 Dominion Energy $16,349 14.2% $10,718 $5,631 William J. McHugh, Assistant Treasurer-Asset Management 149 151 Morgan Stanley $16,144 9.0% $3,213 $12,931 150 135 New Mexico Public Employees $16,050 -1.9% $15,357 $693 28.8% 14.1% 2.0% 55.1% Dominic Garcia, CIO 151 152 Blue Cross & Blue Shield $16,007 8.9% $6,250 $9,757 Jamey Sharpe, Executive Director & Chief Investment Executive 152 149 Episcopal Church $15,823 6.0% $14,544 $1,279 Roger A. Sayler, Managing Director & CIO 153 154 Ohio Deferred Compensation $15,800 9.0% $15,800 Christina Elliott, Executive Director 154 173 UnitedHealth $15,604 20.3% $15,604 155 143 Ohio Police & Fire $15,529 -1.6% $15,529 25.7% 33.6% 1.9% 38.8% Theodore G. Hall, CIO 156 148 Maine Public Employees $15,471 3.5% $15,422 $49 31.1% 13.6% 0.5% 54.8% James Bennett, CIO 157 134 Sammons Enterprises $15,272 -7.1% $15,272 158 153 Ohio School Employees $15,190 3.8% $15,190 47.8% 18.0% 2.7% 31.5% Farouki A. Majeed, CIO 159 157 PricewaterhouseCoopers $15,141 8.3% $3,569 $11,572 160 160 1199SEIU National $15,050 11.3% $14,973 $77 Lorraine Monchak, CIO 161 158 National Grid USA $14,968 8.6% $9,723 $5,245 Francine Kollydas, Director-Investment Management Department 162 162 Toyota USA $14,939 11.3% $4,950 $9,989 Soo young Der, Manager-Investment Group 163 165 Target $14,923 11.9% $4,415 $10,508 25.1% 46.5% 0.1% 28.3% Al Ezban, Director-Benefits Investments 164 171 USAA $14,910 14.7% $6,317 $8,593 Douglas Ward, CIO 165 144 BP America $14,742 -5.6% $7,089 $7,653 Don Kettering, VP-Pensions 166 155 Bayer $14,731 2.3% $5,618 $9,113 20.2% 73.2% 0.3% 6.3% Randy Brodsky, Director-Capital Markets & Trust Investments 167 169 Cisco Systems $14,723 12.9% $14,723 168 179 Cigna $14,700 15.7% $4,400 $10,300 169 177 U.S. Bancorp $14,417 12.7% $6,375 $8,042 170 237/558 AbbVie $14,197 50.1% $4,924 $9,273 171 185 Publix Super Markets $14,116 13.2% $14,116 172 159 BAE (NA) $14,049 3.6% $5,833 $8,216 173 163 San Diego County $14,037 4.9% $14,037 51.2% 27.1% 21.7% Stephen C. Sexauer, CIO 174 189 Comcast Holdings $14,013 14.3% $14,013 Lawrence J. Salva, SVP, Chief Accounting Officer & Controller 175 167 Bank of New York Mellon $13,950 6.7% $6,233 $7,717 176 172 Kroger $13,598 4.7% $3,578 $10,020 Chad Redmond, Investment Manager 177 188 Roche USA $13,535 10.2% $3,822 $9,713 David McDede, VP & Treasurer 178 182 Novartis US $13,501 7.6% $2,492 $11,009 179 198 Accenture $13,394 15.7% $309 $13,085 98.0% 2.0% 180 187 FirstEnergy $13,392 8.2% $8,949 $4,443 Bill Wang, Assistant Treasurer (DB); Jennifer Buchanan, Adviser-Investment Management (DC) 181 166 IAM National $13,360 2.1% $12,757 $603 33.0% 32.0% 35.0% Jonathan S. Young, Director-Investments & 401(k) Plan 182 168 Southwest Airlines $13,342 2.2% $13,342 Elaine Parham, Senior Manager-Compensation 183 175 Kentucky Retirement $13,272 2.9% $13,272 38.7% 36.7% 2.1% 22.5% Steven M. Herbert, Executive Director-Office of Investments 184 170 American Electric $13,254 1.9% $8,101 $5,153 Jim Brown, Investment Specialist 185 150 Medtronic $13,225 -11.4% $2,982 $10,243 186 164 New Mexico Educational $13,206 -1.0% $13,206 31.7% 25.9% 0.9% 41.5% Bob Jacksha, CIO 187 191 Nationwide $13,099 8.6% $6,133 $6,966 188 180 National Elevator Industry $12,971 2.9% $8,487 $4,484 189 190 Cox Enterprises $12,963 7.0% $7,460 $5,503 Frank Glover, Sr. Director-Retirement Investments 190 192 PNC $12,898 7.3% $5,945 $6,953 191 184 Altria $12,854 2.8% $8,472 $4,382 192 186 Electrical Industry, Joint Board $12,729 2.7% $4,073 $8,656 44.0% 36.0% 1.0% 19.0% Robert Ball, CIO 193 174 South Dakota $12,721 -1.5% $12,287 $434 24.9% 23.7% 32.4% 19.0% Matt Clark, State Investment Officer 194 195 Schlumberger $12,570 6.5% $5,028 $7,542 Gary Park, Director-Trust Investments 195 196 Michigan Municipal $12,513 6.8% $9,884 $2,629 52.6% 15.6% 7.6% 24.2% Jeb Burns, CIO 196 181 New York Life $12,511 -0.4% $8,006 $4,505 197 193 Walgreens Boots Alliance $12,435 4.5% $12,435 198 200 Allstate $12,390 7.5% $6,307 $6,083 199 201 Oklahoma Public Employees $12,259 7.2% $10,939 $1,320 67.7% 31.9% 0.3% 0.1% Joseph A. Fox, Executive Director 200 207 Huntington Ingalls $12,221 11.9% $7,303 $4,918

Top 200 total $8,690,581 Pensions & Investments February 8, 2021 | 19 THE LARGEST RETIREMENT FUNDS

Rank Sponsor Assets Change Total DB Total DC Rank Sponsor Assets Change Total DB Total DC

201 Dell Technologies $12,159 5.4% $559 $11,600 269 Marriott International $9,001 -4.1% $9,001 Top 200 funds 202 Montana Board of Investment $12,149 4.3% $12,149 270 Cleveland Clinic $9,000 9.5% $1,406 $7,594 by category 203 Siemens USA $12,136 7.5% $2,692 $9,444 271 Reynolds American $8,982 8.1% $6,722 $2,260 Assets are in millions as of Sept. 30. 204 Pentegra $12,130 2.3% $4,959 $7,171 272 D.C. Retirement Board $8,957 5.2% $8,957

205 Travelers $12,090 7.6% $4,443 $7,647 273 Stanford University $8,919 9.8% $282 $8,637 Asset breakdown

206 Textron $11,966 5.0% $7,659 $4,307 274 ConocoPhillips $8,911 -3.9% $1,655 $7,256 Public Union Misc. Corp. funds funds funds funds 207 University of Pennsylvania $11,948 8.2% $2,060 $9,888 275 Sanofi-Aventis $8,874 9.4% $1,873 $7,001 49.8% 1.6% 13.0% 35.6% 208 Sacramento County $11,858 9.3% $10,611 $1,247 276 Parker-Hannifin $8,741 9.0% $3,183 $5,558 (2019: (1.8%) (12.5%) (35.4%) 209 KPMG $11,833 10.5% $4,684 $7,149 277 DTE Energy $8,703 8.4% $5,520 $3,183 50.3%)

210 Deseret Mutual Benefit $11,778 8.2% $7,364 $4,414 278 Alameda County $8,682 4.3% $8,682

211 Cook County Employees $11,582 8.3% $11,582 279 UNC-Chapel Hill $8,672 9.9% $8,672

212 NTESS $11,504 9.8% $6,596 $4,908 280 ViacomCBS $8,653 33.0% $3,208 $5,445

213 GlaxoSmithKline USA $11,348 9.0% $3,888 $7,460 281 Amazon.com $8,650 33.1% $8,650

214 Marsh & McLennan $11,300 12.4% $5,073 $6,227 282 Marathon Petroleum $8,624 61.3% $2,528 $6,096

215 Tennessee Valley Authority $11,276 3.5% $8,062 $3,214 283 Texas Instruments $8,602 9.5% $1,298 $7,304

216 Chicago Teachers $11,214 4.4% $11,214 284 Burlington Northern Santa Fe $8,584 9.1% $2,848 $5,736

217 Arizona Public Safety $11,197 5.0% $10,900 $297 285 Goodyear Tire & Rubber $8,545 8.4% $5,311 $3,234

218 Cargill $11,188 3.7% $3,221 $7,967 286 Southern California Edison $8,538 -3.8% $3,945 $4,593

219 General Mills $11,132 9.4% $7,096 $4,036 287 SUPERVALU $8,532 8.3% $5,539 $2,993

220 Louisiana State Employees $11,084 -3.1% $11,084 288 Longshoremen ILWU-PMA $8,530 8.1% $6,350 $2,180

221 IMF $11,063 2.5% $11,063 289 United States Steel $8,521 8.2% $5,931 $2,590 222 American International Group $10,981 6.4% $4,717 $6,264 290 T-Mobile $8,479 189.7% $1,722 $6,757 The largest funds 223 Presbyterian Church $10,946 3.8% $10,014 $932 291 NYU $8,474 9.8% $223 $8,251 Corporate funds 224 Teamsters, Central States $10,941 -14.1% $10,941 292 UBS Financial Services $8,467 9.4% $1,426 $7,041 Rank Fund Assets 225 Missouri State Employees $10,917 3.8% $8,393 $2,524 293 Evangelical Lutheran Church $8,423 -17.4% $8,423 1 Boeing $133,688 226 Delaware Public Employees $10,852 5.7% $10,852 294 Leidos $8,380 5.9% $8,380 2 AT&T $127,365 227 Anthem $10,834 10.6% $2,107 $8,727 295 San Diego City $8,379 -0.7% $8,379 3 IBM $109,027 228 San Bernardino County $10,787 0.4% $10,787 296 UPMC $8,313 9.1% $2,727 $5,586 4 Raytheon Technologies $99,717 229 Sutter Health $10,716 8.7% $5,010 $5,706 297 Plumbers & Pipefitters Nat’l $8,288 8.1% $8,282 $6 5 General Motors $87,325 230 Massachusetts Deferred Comp. $10,691 12.1% $10,691 298 Sysco $8,245 8.6% $4,266 $3,979 6 Lockheed Martin $86,317 231 Public Service Enterprise $10,665 6.6% $6,716 $3,949 299 HSBC USA $8,199 8.7% $3,866 $4,333 7 Kaiser $82,516 232 Nestle USA $10,639 8.8% $4,838 $5,801 300 Missouri Local Government $8,126 0.3% $8,126 8 General Electric $80,699 233 NextEra Energy $10,599 14.2% $4,992 $5,607 301 Ameren $8,102 12.6% $5,358 $2,744 9 United Parcel Service $75,438 234 Apple 302 Macy’s $10,559 24.2% $10,559 $8,037 8.8% $3,491 $4,546 10 Ford Motor $65,755 235 Emerson Electric $10,495 4.3% $4,823 $5,672 303 Hewlett Packard Enterprise $8,000 -8.7% $8,000

236 Entergy $10,486 6.5% $6,323 $4,163 304 McKinsey $7,977 9.8% $118 $7,859 Public funds Rank Fund Assets 237 Rhode Island Employees $10,448 8.0% $9,150 $1,298 305 Cummins $7,940 8.8% $3,570 $4,370 1 California Public Employees $426,247 238 Sherwin-Williams $10,336 3.4% $1,592 $8,744 306 Danaher $7,939 9.2% $2,112 $5,827 2 California State Teachers $259,246 239 Eaton $10,080 10.3% $3,570 $6,510 307 Edward Jones $7,734 14.2% $7,734 3 New York State Common $226,400 240 Boilermaker-Blacksmith $10,061 8.1% $8,536 $1,525 308 Southern Baptist Convention $7,693 9.9% $7,693 4 New York City Retirement $225,450 241 BASF USA $10,020 9.1% $3,354 $6,666 309 Aon $7,679 9.2% $2,160 $5,519 5 Florida State Board $180,221 242 Harvard University $10,011 9.4% $2,002 $8,009 310 Utah Higher Education $7,628 9.9% $7,628 6 Texas Teachers $162,656 243 Johnson Controls $9,914 13.0% $2,706 $7,208 311 Fairfax County Retirement $7,617 6.9% $7,617 7 Washington State Board $128,897 244 UFCW Joint Trust, S. Calif. $9,782 8.1% $903 $8,879 312 MUFG Americas $7,504 5.4% $4,543 $2,961 8 Wisconsin Investment Board $124,508 245 Bristol-Myers Squibb $9,772 -21.9% $2,637 $7,135 313 Corning $7,502 8.8% $3,267 $4,235 9 New York State Teachers $122,767 246 Albertsons $9,744 9.2% $2,720 $7,024 314 Occidental Petroleum $7,501 9.3% $1,721 $5,780 10 North Carolina $120,728 247 Arkansas Employees $9,737 6.4% $9,737 315 University of Southern Calif. $7,500 9.8% $245 $7,255 248 MIT $9,694 8.9% $4,021 $5,673 316 Baxter International $7,402 8.4% $4,449 $2,953 Union funds Rank Fund Assets 249 Northwell Health $9,673 9.3% $2,447 $7,226 317 Los Angeles City Def. Comp. $7,400 0.3% $7,400 1 Teamsters, Western Conf. $44,102 250 Wyoming Retirement $9,664 23.0% $8,828 $836 318 Bridgestone Americas $7,390 8.5% $4,405 $2,985 2 National Electric $25,610 251 Motion Picture Industry $9,620 8.1% $4,073 $5,547 319 Weyerhaeuser $7,338 8.3% $4,916 $2,422 3 Operating Eng. International $20,043 252 Goldman Sachs $9,583 7.4% $959 $8,624 320 Ingersoll-Rand $7,325 9.4% $1,538 $5,787 4 1199SEIU National $15,050 253 Charter Communications $9,576 9.0% $3,508 $6,068 321 Philips Electronics $7,313 9.2% $2,041 $5,272 5 IAM National $13,361 254 Contra Costa County $9,497 7.3% $9,497 322 American Express $7,288 7.1% $1,117 $6,171 6 National Elevator Industry $12,971 255 Eversource Energy $9,487 8.4% $5,672 $3,815 323 YMCA $7,261 2.1% $7,261 7 Electrical Ind., Joint Board $12,729 256 Mars $9,443 8.3% $6,100 $3,343 324 Xcel Energy $7,249 8.7% $3,451 $3,798 257 Home Depot $9,378 11.0% $9,378 325 AstraZeneca US $7,237 9.4% $1,334 $5,903 Miscellaneous funds 258 American Honda Motor $9,327 -10.2% $4,455 $4,872 326 Carpenters, New York City $7,219 8.1% $4,333 $2,886 Rank Fund Assets

259 Coca-Cola $9,302 0.8% $5,409 $3,893 327 Carpenters, Northern Calif. $7,166 8.1% $4,204 $2,962 1 Federal Retirement Thrift $651,124

260 Motorola Solutions $9,300 -2.5% $4,000 $5,300 328 AECOM $7,158 9.7% $374 $6,784 2 California University $103,107

261 WestRock $9,290 7.7% $5,370 $3,920 329 Tenet Healthcare $7,152 15.0% $7,152 3 United Nations Joint Staff $73,750

262 Union Pacific $9,248 8.7% $4,689 $4,559 330 Yale University $7,112 9.9% $7,112 4 Federal Reserve Employees $33,516

263 Trinity Health $9,247 7.9% $7,845 $1,402 331 NFL Player Benefits $7,088 8.2% $2,649 $4,439 5 National Railroad $24,508

264 Hartford Financial $9,201 8.8% $4,161 $5,040 332 Cornell University $7,021 9.9% $7,021 6 World Bank $23,814

265 Duke University $9,145 9.4% $1,927 $7,218 333 Chubb $6,963 8.7% $3,490 $3,473 7 Illinois State Universities $23,469

266 Kraft Heinz $9,099 1.6% $5,028 $4,071 334 Willis Towers Watson $6,958 8.7% $3,288 $3,670 8 SUNY $23,000

267 Sempra Energy $9,031 1.7% $4,618 $4,413 335 WEC Energy Group $6,937 8.7% $3,422 $3,515 9 CommonSpirit Health $22,496 268 Phillips 66 $9,017 9.1% $2,870 $6,147 10 Ascension $21,850 CONTINUED ON PAGE 20 20 | February 8, 2021 Pensions & Investments THE LARGEST RETIREMENT FUNDS

The largest retirement funds/sponsors Ranked by total assets, in millions, as of Sept. 30.

Rank Sponsor Assets Change Total DB Total DC Rank Sponsor Assets Change Total DB Total DC

336 DXC Technology $6,872 8.6% $3,620 $3,252 404 UFCW, Atlanta $5,558 8.1% $5,558 Top 200 funds 337 Michelin $6,866 0.7% $3,150 $3,716 405 Nissan USA $5,548 9.1% $1,831 $3,717 by type 338 Capital One Financial $6,856 9.8% $269 $6,587 406 State Street $5,532 9.4% $1,027 $4,505 Assets are in millions as of Sept. 30. 339 Howmet Aerospace $6,841 8.7% $3,456 $3,385 407 Saint-Gobain $5,517 8.4% $3,490 $2,027

340 Lowes $6,838 5.9% $6,838 408 Northwestern Mutual $5,510 9.0% $2,097 $3,413 Asset breakdown 341 New Hampshire Retirement $6,833 -25.0% $6,833 409 Army & Air Force Exchange $5,506 7.5% $5,506 De ned De ned 342 ADP $6,808 9.2% $1,975 $4,833 410 Illinois Tool Works $5,498 9.0% $1,884 $3,614 bene t contribution assets assets 343 Southwest Airlines Pilots $6,780 16.8% $6,780 411 SAP America $5,484 13.3% $5,484 67.6% 32.4% 344 Ecolab $6,754 9.0% $2,518 $4,236 412 Deutsche Bank USA $5,473 9.2% $1,499 $3,974 (68.3%) (31.7%) 345 Thermo Fisher Scientific $6,748 9.4% $1,296 $5,452 413 Steelworkers Pension $5,463 8.1% $5,463

346 Mount Sinai $6,738 9.8% $24 $6,714 414 Colgate-Palmolive $5,432 8.9% $2,061 $3,371

347 UMWA Health & Retirement $6,698 8.1% $6,246 $452 415 Robert Bosch $5,428 9.0% $2,037 $3,391

348 Reynolds Group $6,694 -28.5% $3,969 $2,725 416 Air Products & Chemicals $5,427 8.5% $3,043 $2,384

349 MITRE $6,693 9.8% $6,693 417 Boston Retirement $5,416 6.7% $5,416

350 Amgen $6,681 11.0% $6,681 418 Vermont Pension $5,413 13.9% $4,582 $831

351 MassMutual $6,642 8.8% $2,861 $3,781 419 Montgomery County $5,408 1.6% $4,263 $1,145

352 Rockwell Automation $6,617 8.8% $3,019 $3,598 420 Unisys $5,402 8.2% $3,744 $1,658

353 Equitable Holdings $6,597 8.9% $2,678 $3,919 421 Manufacturers & Traders $5,393 8.8% $2,350 $3,043

354 UFCW Industry, Illinois $6,595 $6,595 422 Eastman Chemical $5,358 8.9% $2,023 $3,335

355 Intermountain Healthcare $6,574 8.6% $3,398 $3,176 423 Memorial Sloan-Kettering $5,343 9.2% $1,433 $3,910

356 Schneider Electric USA $6,568 9.2% $1,843 $4,725 424 Service Employees 32B & 32J $5,321 8.1% $3,645 $1,676

357 Michigan State University $6,442 9.9% $6,442 425 Fannie Mae $5,314 8.8% $2,434 $2,880

358 North Dakota State $6,435 6.7% $6,435 426 California Institute of Tech. $5,294 7.3% $5,294

359 Xerox $6,412 0.3% $2,651 $3,761 427 University of Rochester $5,249 9.9% $5,249 The largest funds

360 Siemens Healthineers USA $6,303 9.4% $1,095 $5,208 428 Battelle $5,241 8.6% $2,870 $2,371 DB plans Rank Fund Assets 361 Whirlpool $6,282 8.6% $3,236 $3,046 429 John Hancock $5,215 8.5% $2,972 $2,243 1 California Public Employees $424,306 362 Ventura County $6,274 9.8% $6,274 430 Saudi Arabian Oil $5,197 8.8% $2,321 $2,876 2 California State Teachers $257,856 363 Colorado Fire & Police $6,250 6.7% $5,697 $553 431 Maryland Supplemental $5,184 9.7% $5,184 3 New York State Common $226,400 364 PPL $6,216 8.2% $4,264 $1,952 432 Ball $5,148 8.7% $2,389 $2,759 4 New York City Retirement $225,450 365 University of Chicago $6,200 17.3% $787 $5,413 433 Fresno County $5,139 6.1% $5,139 5 Florida State Board $168,002 366 Ericsson $6,171 8.8% $2,649 $3,522 434 Principal Financial $5,136 9.0% $1,794 $3,342 6 Texas Teachers $162,656 367 Frontier Communications $6,150 8.8% $2,870 $3,280 435 McKesson $5,128 9.7% $380 $4,748 7 New York State Teachers $122,767 368 Eastman Kodak $6,131 -2.5% $3,565 $2,566 436 Valvoline $5,117 8.5% $3,020 $2,097 8 Wisconsin Investment Board $118,029 369 Kimberly-Clark $6,047 9.2% $1,690 $4,357 437 Washington University $5,115 9.9% $5,115 9 North Carolina $107,497 370 National Sprinkler Local 669 $6,035 8.1% $4,112 $1,923 438 Pinnacle West $5,109 8.2% $3,646 $1,463 10 Washington State Board $107,257 371 Sheet Metal National $6,022 8.1% $5,913 $109 439 Operating Engineers Local 3 $5,093 8.1% $4,735 $358 372 Credit Suisse (USA) $6,009 9.4% $1,082 $4,927 440 Milwaukee City $5,078 -4.8% $5,078 DC plans 373 Thomson Reuters $5,982 3.2% $2,324 $3,658 441 S&P Global $5,060 9.0% $1,875 $3,185 Rank Fund Assets

374 Broadcom $5,957 7.7% $5,957 442 Insperity $5,054 13.7% $5,054 1 Federal Retirement Thrift $651,124

375 Booz Allen Hamilton $5,925 9.8% $5,925 443 Carpenters, Southwest $5,017 8.1% $5,017 2 Boeing $69,516

376 TIAA $5,924 $5,924 444 Kansas Regents $5,008 9.8% $5,008 3 AT&T $68,543

377 Jacobs Engineering $5,882 9.7% $324 $5,558 445 Florida Deferred Comp. $5,000 8.2% $5,000 4 IBM $55,606

378 Chicago Deferred Comp. $5,853 9.7% $5,853 446 Operating Engineers Midwest $4,987 8.1% $4,888 $99 5 Raytheon Technologies $48,275

379 Kellogg $5,830 2.3% $3,571 $2,259 447 XPO Logistics $4,986 8.9% $1,941 $3,045 6 Wells Fargo $47,430

380 Sony Music Entertainment $5,822 9.4% $1,023 $4,799 448 Sony America $4,973 9.4% $855 $4,118 7 Lockheed Martin $46,952

381 Progressive $5,816 12.5% $5,816 449 Nucor $4,967 6.7% $4,967 8 Bank of America $42,595

382 Carpenters, New England $5,805 14.9% $5,805 450 Vanderbilt University $4,934 8.1% $4,934 9 Verizon $35,624

383 Philadelphia Public Employees $5,784 7.5% $5,784 451 Inter-American Dev. Bank $4,933 5.0% $4,933 10 Walmart $33,930

384 CSX $5,781 8.7% $2,923 $2,858 452 Sentara Healthcare $4,918 8.7% $2,326 $2,592 Public DC plans 385 GEICO $5,781 9.2% $1,614 $4,167 453 CMS/Consumers Energy $4,906 8.4% $3,044 $1,862 Rank Fund Assets 386 Community Health $5,779 9.4% $1,054 $4,725 454 Carpenters, Chicago $4,890 8.1% $4,247 $643 1 New York State Def. Comp. $28,804 387 Linde $5,746 372.1% $2,918 $2,828 455 Alcoa $4,871 8.1% $3,771 $1,100 2 New York City Def. Comp. $24,191 388 PPG Industries $5,744 9.3% $1,365 $4,379 456 Campbell Soup $4,869 8.2% $3,445 $1,424 3 Washington State Board $21,640 389 ArcelorMittal USA $5,733 8.6% $2,979 $2,754 457 Phoenix City $4,857 9.3% $2,815 $2,042 4 Los Angeles Co. Deferred $16,759 390 Anheuser-Busch InBev $5,709 9.2% $1,586 $4,123 458 NTCA $4,813 5.2% $2,493 $2,320 5 New York City Teachers $16,723 391 ABA Retirement $5,692 -9.6% $5,692 459 Amsted Industries $4,789 9.8% $196 $4,593 6 California Savings Plus $16,678 392 Bechtel Global $5,667 $5,667 460 Major League Baseball $4,789 8.1% $4,099 $690 7 Ohio Deferred Comp. $15,800 393 Qualcomm $5,665 12.6% $5,665 461 San Mateo County $4,781 0.3% $4,781 8 North Carolina $13,230 394 Savannah River $5,658 8.5% $3,212 $2,446 462 Quest Diagnostics $4,761 6.9% $4,761 9 Florida State Board $12,219 395 J.C. Penney $5,644 -2.9% $3,418 $2,226 463 Vanguard Group $4,750 -25.2% $4,750 10 Minnesota State Board $10,960 396 Becton, Dickinson $5,642 9.2% $1,663 $3,979 464 Norfolk Southern $4,746 8.6% $2,501 $2,245

397 Conagra Brands $5,613 8.2% $4,072 $1,541 465 KeyCorp $4,732 9.2% $1,424 $3,308

398 Halliburton $5,608 9.8% $82 $5,526 466 ABB $4,727 9.3% $1,070 $3,657

399 LSC Communications $5,604 8.1% $4,263 $1,341 467 Adventist Healthcare $4,720 9.7% $230 $4,490

400 Humana $5,602 13.6% $5,602 468 BJC HealthCare $4,703 8.3% $3,151 $1,552

401 Valero Energy $5,598 8.8% $2,542 $3,056 469 Molson Coors Brewing $4,694 8.8% $2,092 $2,602

402 CNA Financial $5,593 8.6% $3,019 $2,574 470 Painters & Allied Trades $4,688 8.1% $4,039 $649

403 Houston Police Officers $5,572 -1.6% $5,572 CONTINUED ON PAGE 22 ;^YjX^Vgn :H< BVcV\ZbZci EZch^dcGZ[dgb 9ZXjbjaVi^dc

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OUR ADVISORY BOARD

Cheryl Alston Magnus Billing Katja Bjerstedt Executive Director & CIO CEO Chief Economist EMPLOYEES’ RETIREMENT FUND ALECTA VARMA OF THE CITY OF DALLAS, TEXAS

Debby Blakey Francesco Briganti Harshal Chaudhari CEO Secretary General Chief Investment Officer HESTA CROSS BORDER BENEFITS GE ALLIANCE EUROPE

Jaap van Dam Chris Davies Sandro Doudin Principal Director of CEO Pension Investment Manager Investment Strategy Group Investment Management TELSTRASUPER PGGM ZURICH INSURANCE COMPANY LTD

Caroline Escott Don Ezra Grégoire Haenni Senior Investment Manager P&I Advisory Board & Happily retired Chief Investment Officer RPMI RAILPEN FORMER CO-CHAIR, GLOBAL CONSULTING CAISSE DE PRÉVOYANCE DE RUSSELL INVESTMENTS WORLDWIDE L’ETAT DE GENÈVE (CPEG)

Andrew Halsey Manuel García Huitrón Fernando Larraín Head of Group Global Pensions Senior Consultant Labor Markets Director General and Social Security Division ABB GROUP AFP ASSOCIATION OF CHILE INTER-AMERICAN DEVELOPMENT BANK (IDB)

Ton van der Linden Anders Lundgren Gregg McClymont Benelux Business Services Head of Public Markets and Executive Director for public affairs Manager & Treasurer Investment Strategy IFM INVESTORS EXXONMOBIL NEST

Ashby Monk Alwin Oerlemans Alan Rubenstein Executive Director and Research Director Head of Product Development Chairman of the Investment | Cofounder & Chairman of Long Game Sub-committee APG STANFORD UNIVERSITY’S GLOBAL BRITISH COAL STAFF PROJECTS CENTER SUPERANNUATION SCHEME

John St.Hill Cameron Whitehead Ivana Zanardo Deputy CIO and Head of Matching Head of Corporate Pensions Vice President, Plan Operations Assets ROYAL DUTCH SHELL HEALTHCARE OF ONTARIO BA PENSIONS PENSION PLAN (HOOPP)

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21pi0027.pdf RunDate: 02/08/21 Full Page Color: 4/C 22 | February 8, 2021 Pensions & Investments THE LARGEST RETIREMENT FUNDS

The largest retirement funds/sponsors Ranked by total assets, in millions, as of Sept. 30.

Rank Sponsor Assets Change Total DB Total DC Rank Sponsor Assets Change Total DB Total DC

471 Comerica $3,104 $1,581 539 Cardinal Health $3,803 $4,685 7.1% $3,803 9.1% Average asset mixes As of Sept. 30. 472 Nike $4,684 10.3% $4,684 540 LyondellBasell $3,801 8.7% $1,834 $1,967

473 ECA & Local 134 IBEW $4,679 8.9% $2,017 $2,662 541 IBEW International $3,772 8.1% $3,670 $102 Top 200 DB plans 474 Regions Financial $4,666 8.6% $2,471 $2,195 542 BMO Financial $3,738 9.0% $1,372 $2,366

475 CenterPoint Energy $4,614 8.9% $1,953 $2,661 543 NiSource $3,738 4.7% $2,130 $1,608 Corporate plans 2020 2019 Domestic fixed income 48.3% 47.4% 476 AK Steel $4,601 8.8% $2,112 $2,489 544 Directors Guild-Producer $3,735 6.3% $1,835 $1,900 Global equity 13.3% 9.3% 477 University of Kentucky $4,584 9.8% $4,584 545 McDonald’s $3,729 -2.2% $3,729 Domestic equity 10.6% 12.5% 478 Alaska Air $4,548 8.9% $1,863 $2,685 546 Montgomery Public Schools $3,729 8.6% $1,970 $1,759 Non-U.S. equity 7.1% 8.5% 479 Charles Schwab $4,524 9.9% $4,524 547 Farmers Group $3,723 11.6% $3,723 Private equity 6.2% 6.5% 480 TriNet Group $4,504 $4,504 548 Applied Materials $3,718 13.0% $3,718 Alternative investments 4.6% 5.4% 481 Highmark $4,491 8.5% $2,655 $1,836 549 Producer-Writers Guild $3,718 8.1% $3,718 Real estate equity 4.5% 4.3% 482 FM Global $4,490 8.3% $3,030 $1,460 550 Enterprise Rent-A-Car $3,711 9.9% $3,711 Cash 2.2% 2.5%

483 B&W Technical Y-12 $4,480 8.3% $2,862 $1,618 551 San Jose Police & Fire $3,709 1.7% $3,709 Global/non-U.S. fixed income 0.7% 1.7% Other 2.5% 1.9% 484 Capital Group $4,478 8.3% $2,901 $1,577 552 TJX $3,681 8.9% $1,418 $2,263 485 PACCAR $4,467 8.6% $2,427 $2,040 553 Ricoh USA $3,666 9.1% $1,113 $2,553 Public plans 2020 2019 486 WMATA Retirement $4,467 -14.0% $4,467 554 University of Missouri Curators $3,655 -4.3% $3,655 Domestic equity 24.6% 24.8%

487 Northwestern University $4,462 9.8% $4,462 555 FIS $3,604 8.7% $3,604 Domestic fixed income 21.0% 21.1% Non-U.S. equity 16.9% 17.3% 488 Louisiana Sheriffs $4,456 7.8% $4,456 556 Unum Group $3,596 8.7% $1,736 $1,860 Private equity 10.3% 9.9% 489 Genuine Parts $4,451 8.7% $2,186 $2,265 557 Iron Workers, California $3,585 8.1% $2,531 $1,054 Real estate equity 8.7% 8.7% 490 Boston Scientific $4,450 13.6% $4,450 558 Beaumont Hospitals $3,572 8.9% $1,410 $2,162 Alternative investments 7.6% 7.3% 491 Hearst $4,445 8.4% $2,692 $1,753 559 Hanford Site $3,572 8.7% $1,679 $1,893 Global equity 5.2% 4.8% 492 Kern County Employees $4,439 0.1% $4,439 560 Idaho National Laboratory $3,569 8.4% $2,176 $1,393 Global/non-U.S. fixed income 2.3% 2.6% 493 Bechtel Marine Propulsion $4,433 8.6% $2,355 $2,078 561 Laborers, Massachusetts $3,520 8.1% $1,837 $1,683 Cash 2.0% 1.7% 494 Food Lion $4,426 9.2% $1,274 $3,152 562 Lincoln National $3,519 2.2% $1,024 $2,495 Other 1.4% 1.8%

495 New York State Nurses $4,423 7.5% $4,423 563 Citizens Financial $3,517 9.0% $1,256 $2,261 Union plans 2020 2019 496 Carpenters, New Jersey $4,422 8.1% $1,724 $2,698 564 Chicago Municipal Employees $3,508 -4.1% $3,508 Domestic fixed income 28.0% 35.5% 497 Baker Hughes $4,416 9.5% $714 $3,702 565 Fluor $3,507 -1.1% $3,507 Domestic equity 24.7% 22.8% 498 Atlanta City $4,390 7.7% $3,992 $398 566 KBR $3,506 9.8% $100 $3,406 Global equity 11.4% 9.7%

499 Zurich American $4,374 9.0% $1,596 $2,778 567 Salt River Valley $3,502 8.2% $2,458 $1,044 Real estate equity 9.3% 8.7%

500 Stryker $4,368 17.3% $4,368 568 Auto Club of Southern Calif. $3,495 10.4% $2,294 $1,201 Non-U.S. equity 8.6% 8.2% Alternative investments 8.3% 6.8% 501 Kinder Morgan $4,353 -0.8% $1,962 $2,391 569 Tenneco $3,492 9.0% $1,353 $2,139 Private equity 8.2% 6.8% 502 SAG-Producers $4,312 8.1% $4,312 570 Oncor Electric Delivery $3,483 8.1% $2,561 $922 Global/non-U.S. fixed income 0.9% 0.7% 503 Northern Trust $4,304 8.9% $1,664 $2,640 571 Allina Health $3,471 9.8% $48 $3,423 Cash 0.6% 0.6% 504 Avangrid $4,299 8.7% $2,092 $2,207 572 Olin $3,471 8.1% $2,507 $964 Other 0.0% 0.2% 505 RELX $4,299 9.1% $1,470 $2,829 573 Laborers, Northern California $3,465 8.1% $2,947 $518 506 Houston Firefighters $4,270 0.3% $4,270 574 Winco Foods $3,458 -17.4% $3,458 Top 1,000 DB plans 507 Archer Daniels Midland $4,252 9.0% $1,550 $2,702 575 Navistar $3,457 8.4% $2,197 $1,260 Corporate plans 2020 2019 508 Sears Holdings $4,247 8.7% $2,055 $2,192 576 Gannett $3,449 8.6% $1,901 $1,548 Domestic fixed income 48.4% 47.5% 509 Louisiana Parochial Employees $4,246 -5.3% $4,246 577 Publicis USA $3,445 9.7% $230 $3,215 Domestic equity 12.2% 13.9% 510 Meijer $4,225 8.3% $2,897 $1,328 578 Carpenters, Empire State $3,434 8.1% $3,434 Global equity 12.1% 8.6% 511 Burns & McDonnell $4,203 9.9% $13 $4,190 579 United Church of Christ $3,432 -1.7% $3,432 Non-U.S. equity 7.6% 9.1% 512 TD Bank $4,201 9.5% $567 $3,634 580 HDR $3,431 9.9% $3,431 Private equity 5.9% 6.0% 513 Boehringer Ingelheim $4,171 7.8% $1,896 $2,275 581 H-E-B $3,428 9.8% $3,428 Alternative investments 4.4% 4.9% 514 Health Care Service $4,158 8.8% $1,820 $2,338 582 Manhattan & Bronx Surface $3,421 11.4% $3,421 Real estate equity 4.1% 4.1%

515 Lutherans-Missouri Synod $4,139 1.4% $3,523 $616 583 Fiserv $3,417 9.8% $6 $3,411 Cash 2.0% 2.4% Global/non-U.S. fixed income 0.9% 1.6% 516 Voya Financial $4,135 8.8% $1,919 $2,216 584 Omnicom Group $3,416 7.1% $3,416 Other 2.4% 1.9% 517 Tyco Electronics $4,124 9.2% $1,226 $2,898 585 Nevada Higher Education $3,415 9.8% $3,415

518 Bakery & Confectionery $4,119 8.1% $4,119 586 Allegheny Technologies $3,411 8.4% $2,079 $1,332 Public plans 2020 2019

519 University of Nebraska $4,110 $4,110 587 Kentucky Deferred Comp. $3,410 -4.3% $3,410 Domestic equity 24.6% 24.8% Domestic fixed income 21.0% 21.1% 520 Guardian Life $4,101 8.4% $2,496 $1,605 588 Harley-Davidson $3,406 8.3% $2,244 $1,162 Non-U.S. equity 17.0% 17.4% 521 Montefiore Medical Center $4,084 9.8% $30 $4,054 589 Dallas City Employees $3,389 -4.6% $3,389 Private equity 10.2% 9.9% 522 Maryland Optional $4,079 2.4% $4,079 590 Christian Church (Disciples) $3,388 $2,582 $806 Real estate equity 8.6% 8.6% 523 Carpenters, Ohio $4,061 8.1% $3,681 $380 591 Hartford HealthCare $3,378 8.5% $1,888 $1,490 Alternative investments 7.7% 7.3% 524 Hallmark Cards $4,044 9.5% $627 $3,417 592 ARAMARK $3,377 8.7% $1,640 $1,737 Global equity 5.1% 4.8% 525 UFCW, Northern California $4,032 8.1% $3,744 $288 593 Newell Brands $3,374 8.9% $1,315 $2,059 Global/non-U.S. fixed income 2.4% 2.7% 526 American National Red Cross $4,030 8.2% $2,751 $1,279 594 Parsons $3,370 -1.0% $3,370 Cash 2.0% 1.6%

527 Triumph Group $4,003 8.2% $2,834 $1,169 595 San Antonio Fire & Police $3,358 1.9% $3,358 Other 1.4% 1.8%

528 Laborers, Chicago & Vicinity $3,976 8.1% $3,976 596 Fresno City Retirement $3,351 5.5% $3,121 $230 Union plans 2020 2019 529 Boston University $3,933 9.9% $3,933 597 CRH Americas $3,341 9.6% $331 $3,010 Domestic fixed income 31.5% 31.2% 530 Stanford Hospital $3,932 9.7% $200 $3,732 598 AFTRA $3,333 8.1% $3,333 Domestic equity 22.8% 23.4%

531 Nashville & Davidson County $3,927 3.9% $3,552 $375 599 Smithfield Foods $3,328 8.3% $2,119 $1,209 Global equity 9.2% 8.8%

532 Emory University $3,922 8.0% $3,922 600 Facebook $3,310 60.5% $3,310 Non-U.S. equity 8.8% 8.9% Alternative investments 8.6% 8.4% 533 Pipefitters Local 597 $3,904 8.4% $2,404 $1,500 601 Santa Barbara County $3,304 3.3% $3,304 Real estate equity 8.5% 9.1% 534 Celanese Americas $3,886 8.0% $3,057 $829 602 Sentry Insurance $3,296 8.6% $1,712 $1,584 Private equity 7.8% 7.2% 535 Ahold Delhaize USA $3,881 9.2% $1,083 $2,798 603 Pitney Bowes $3,292 8.7% $1,583 $1,709 Global/non-U.S. fixed income 1.1% 1.1% 536 Mondelez International $3,849 8.8% $1,802 $2,047 604 Graham Holdings $3,279 8.0% $2,530 $749 Cash 1.0% 0.8% 537 Nordstrom $3,832 5.8% $3,832 605 NCR $3,260 8.7% $1,516 $1,744 Other 0.7% 1.1% 538 Hormel Foods $3,817 8.8% $1,661 $2,156 606 University of Wisconsin $3,255 9.9% $3,255 Pensions & Investments February 8, 2021 | 23 THE LARGEST RETIREMENT FUNDS

Rank Sponsor Assets Change Total DB Total DC Rank Sponsor Assets Change Total DB Total DC

607 Retail Clerks, Washington $3,245 675 Blue Cross/Shield of Michigan $1,570 $1,208 Average asset mixes As of Sept. 30. $3,245 8.1% $2,778 8.5% 608 San Joaquin County $3,242 5.2% $3,242 676 Princeton University $2,777 8.2% $2,777

609 Rite Aid $3,235 4.1% $3,235 677 Fifth Third $2,773 9.7% $197 $2,576 Top 200 DC plans 610 Hess $3,224 8.1% $2,407 $817 678 Operating Engineers 302 & 612 $2,765 8.1% $2,765

Corporate plans 2020 2019 611 University of Miami $3,224 9.8% $3,224 679 Equity League $2,747 8.1% $2,376 $371

Domestic equity* 32.4% 32.0% 612 Banner Health $3,223 9.8% $86 $3,137 680 Solvay USA $2,740 9.3% $662 $2,078

Target date 23.7% 25.3% 613 Hawaii Deferred Compensation $3,219 9.6% $3,219 681 BlackRock $2,736 9.8% $2,736

Stable value 11.4% 10.5% 614 Seattle City Employees $3,210 7.1% $3,210 682 Iowa Fire & Police $2,734 4.3% $2,734 Sponsoring company equity 8.4% 10.2% 615 Operating Engineers Local 18 $3,206 8.1% $3,206 683 Energy Transfer $2,725 9.1% $815 $1,910 Fixed income 7.3% 6.1% 616 Williams $3,196 8.7% $1,582 $1,614 684 Carpenters, Philadelphia $2,724 8.1% $2,482 $242 Non-U.S. equity 6.2% 6.3% 617 Santa Clara County Deferred $3,195 9.7% $3,195 685 NYC Hotel Trades $2,718 8.1% $2,110 $608 Cash 1.6% 1.8% 618 JetBlue Airways $3,189 19.9% $3,189 686 Oklahoma Police $2,715 4.5% $2,715 Inflation protection 0.6% 0.6% 619 Bloomberg $3,188 16.2% $3,188 687 Pearson $2,711 9.7% $135 $2,576 Annuities 0.4% 0.3% 620 T. Rowe Price $3,180 13.1% $3,180 688 Memphis City $2,710 -3.1% $2,355 $355 Other 8.0% 6.9% 621 Unilever USA $3,180 9.0% $1,115 $2,065 689 BMW USA $2,706 8.8% $1,253 $1,453 Public plans 2020 2019 622 Savings Banks Employees $3,177 8.4% $2,011 $1,166 690 Cincinnati Children’s $2,706 8.5% $1,525 $1,181 Domestic equity 39.3% 40.9% 623 Fresenius Medical Care $3,162 20.7% $3,162 691 Roofers United $2,701 8.1% $2,662 $39 Target date 22.9% 21.6% 624 Nexstar Media Group $3,151 8.5% $1,808 $1,343 692 Intercontinental Exchange $2,692 9.0% $948 $1,744 Stable value 14.8% 15.6% 625 Science Applications Int’l $3,121 $3,121 693 Pipe Trades, Twin Cities $2,691 8.2% $1,476 $1,215 Fixed income 7.2% 6.2% 626 Laborers International $3,117 8.1% $3,002 $115 694 Building Trades United $2,685 8.1% $2,685 Non-U.S. equity 6.0% 6.4% 627 VF Corp. $3,105 8.5% $1,805 $1,300 695 Wellington Mgmt. $2,672 9.7% $174 $2,498 Cash 2.2% 1.6% 628 Waste Management $3,099 9.8% $126 $2,973 696 George Washington University $2,634 9.8% $2,634 Annuities 1.5% 0.6% Inflation protection 0.2% 0.4% 629 UBS Investment Bank $3,098 9.5% $502 $2,596 697 IBEW 11, 440, 441, 477 $2,630 8.1% $1,589 $1,041 Other 5.9% 6.7% 630 McDermott $3,092 9.3% $693 $2,399 698 Los Angeles County MTA $2,619 4.1% $1,659 $960 631 Salesforce.com $3,090 $3,090 699 Freddie Mac $2,618 9.8% $60 $2,558 Union plans 2020 2019 632 Evergy $3,077 8.6% $1,615 $1,462 700 Verisk Analytics $2,614 9.3% $667 $1,947 Target date 52.0% 97.1% 633 American Family $3,076 8.6% $1,627 $1,449 701 Andersen $2,609 9.0% $957 $1,652 Domestic equity 26.0% 1.6% 634 Carpenters, St. Louis $3,076 8.1% $3,076 702 Operating Engineers Local 12 $2,609 8.1% $2,609 Stable value 12.0% 0.7% 635 Pennsylvania Municipal $3,072 16.1% $3,072 703 Detroit Police & Fire $2,606 -11.5% $2,606 Non-U.S. equity 4.0% 0.2% 636 704 Fixed income 4.0% 0.2% Advance Publications $3,071 8.6% $1,561 $1,510 Dairy Farmers $2,601 158.5% $812 $1,789 Inflation protection 1.0% 0.1% 637 Tyson Foods $3,071 9.8% $76 $2,995 705 Starbucks $2,598 18.2% $2,598 Cash 0.0% 0.0% 638 Teamsters Local 710 $3,070 5.5% $3,070 706 Volvo Group $2,597 8.7% $1,352 $1,245 Annuities 0.0% 0.0% 639 Daimler Trucks $3,066 8.8% $1,319 $1,747 707 Georgia Municipal $2,584 0.1% $2,470 $114 Other 1.0% 0.1% 640 New York Times $3,041 8.6% $1,640 $1,401 708 Marin County Employees $2,578 -0.7% $2,578

641 Case New Holland $3,026 8.9% $1,230 $1,796 709 Fairfax County Education $2,576 4.1% $2,576 Top 1,000 DC plans 642 Freeport-McMoRan $3,026 9.2% $896 $2,130 710 Anne Arundel County $2,571 8.0% $2,265 $306 643 Aerospace $3,020 7.8% $2,619 $401 711 Bimbo Bakeries USA $2,561 8.7% $1,302 $1,259 Corporate plans 2020 2019 644 Ryder System $3,010 8.7% $1,501 $1,509 712 Brunswick $2,555 9.1% $770 $1,785 Domestic equity* 33.5% 33.1% 645 Estee Lauder $3,008 9.1% $978 $2,030 713 Jones Day $2,552 9.1% $830 $1,722 Target date 24.6% 25.5% 646 Precision Castparts $3,003 9.2% $911 $2,092 714 Dun & Bradstreet $2,548 8.6% $1,346 $1,202 Stable value 10.5% 10.1% Fixed income 7.8% 6.4% 647 W.W. Grainger $2,993 2.6% $2,993 715 Christiana Care Health $2,545 8.9% $1,100 $1,445 Sponsoring company equity 7.2% 9.6% 648 SAS Institute $2,989 6.1% $2,989 716 Arkansas Local Police & Fire $2,544 10.3% $2,544 Non-U.S. equity 6.7% 6.5% 649 RBC Wealth Mgmt. $2,986 9.9% $2,986 717 CITGO Petroleum $2,539 8.6% $1,276 $1,263 Cash 1.9% 1.9% 650 Quad/Graphics $2,971 9.5% $474 $2,497 718 CBRE $2,538 18.6% $2,538 Inflation protection 0.5% 0.5% 651 Thrivent Financial for Lutherans $2,965 8.9% $1,183 $1,782 719 Jacksonville Retirement $2,535 2.9% $2,218 $317

Annuities 0.3% 0.3% 652 Georgetown University $2,960 9.7% $217 $2,743 720 Chicago Policemen $2,534 -0.8% $2,534

Other 7.0% 6.1% 653 Land O’Lakes $2,951 8.9% $1,146 $1,805 721 Sonoco Products $2,531 8.7% $1,262 $1,269

Public plans 2020 2019 654 US Foods $2,937 9.1% $999 $1,938 722 United Steelworkers Int’l $2,529 8.1% $2,143 $386 Domestic equity 39.4% 40.8% 655 Amica Mutual Insurance $2,932 8.1% $2,207 $725 723 Arlington County $2,527 -11.5% $2,527 Target date 23.0% 21.7% 656 Hershey $2,917 9.0% $1,091 $1,826 724 Verso $2,511 8.5% $1,408 $1,103 Stable value 15.3% 16.1% 657 Barclays Bank $2,894 9.3% $678 $2,216 725 Visa $2,500 9.8% $2,500 Fixed income 7.1% 6.2% 658 NXP Semiconductors $2,893 9.8% $2,893 726 Universal Health Services $2,499 $2,499

Non-U.S. equity 5.9% 6.3% 659 Hawaiian Electric Industries $2,890 14.5% $2,072 $818 727 Kohler $2,498 8.6% $1,397 $1,101

Cash 2.1% 1.5% 660 Henkel $2,890 9.1% $890 $2,000 728 Clorox $2,494 9.4% $524 $1,970

Annuities 1.4% 0.5% 661 Austin Employees $2,884 4.5% $2,884 729 L’Oreal USA $2,491 8.9% $1,024 $1,467 Inflation protection 0.3% 0.5% 662 Oklahoma Firefighters $2,871 -3.5% $2,871 730 Assurant $2,487 9.0% $916 $1,571 Other 5.5% 6.4% 663 Houston Municipal $2,870 -7.6% $2,870 731 Rolls-Royce (NA) $2,482 9.0% $849 $1,633

Union plans 2020 2019 664 Interpublic Group $2,867 9.8% $109 $2,758 732 UMass Memorial Health $2,474 8.9% $1,007 $1,467

Target date 42.9% 65.0% 665 PacifiCorp $2,861 8.9% $1,187 $1,674 733 Micron Technology $2,467 6.9% $2,467

Domestic equity 23.3% 16.5% 666 Sidley Austin $2,861 8.9% $1,109 $1,752 734 Laborers, Southern California $2,464 8.1% $2,464

Stable value 17.4% 5.9% 667 Sonoma County $2,840 0.2% $2,840 735 San Jose Federated City $2,456 15.4% $2,456 Fixed income 6.2% 4.5% 668 Service Employees Int’l $2,838 8.1% $2,838 736 General Re $2,444 9.3% $584 $1,860 Non-U.S. equity 5.7% 4.5% 669 Avaya $2,831 9.0% $988 $1,843 737 Cintas $2,441 $2,441 Cash 0.3% 0.1% 670 RWJBarnabas Health $2,827 $2,827 738 Discover $2,431 9.3% $543 $1,888 Inflation protection 0.2% 0.1% 671 Westinghouse Electric $2,825 15.4% $1,280 $1,545 739 Fox $2,430 10.9% $817 $1,613 Annuities 0.0% 1.7% 672 Johns Hopkins $2,817 8.5% $1,602 $1,215 740 Depository Trust & Clearing $2,426 8.8% $1,056 $1,370 Other 4.0% 1.7% 673 Cerner $2,816 16.7% $2,816 741 Baltimore Fire & Police $2,412 -19.0% $2,412 *Does not include sponsoring company equity 674 UnityPoint Health $2,800 9.4% $524 $2,276 CONTINUED ON PAGE 24 24 | February 8, 2021 Pensions & Investments THE LARGEST RETIREMENT FUNDS

The largest retirement funds/sponsors Ranked by total assets, in millions, as of Sept. 30.

Rank Sponsor Assets Change Total DB Total DC Rank Sponsor Assets Change Total DB Total DC

742 USG $1,426 $983 810 Seafarers $1,877 $200 $2,409 8.5% $2,077 8.1% Aggregate asset mixes As of Sept. 30. 743 Ameriprise Financial $2,408 12.4% $2,408 811 Jacksonville Police & Fire $2,074 -0.2% $2,074 744 Adobe Systems $2,405 19.4% $2,405 812 Ametek $2,065 9.1% $655 $1,410 Top 200 DB funds 745 Lubrizol $2,396 9.0% $909 $1,487 813 Seagate Technology $2,065 6.4% $2,065

746 Laborers, Minnesota $2,392 8.1% $2,392 814 Black & Veatch $2,064 -6.2% $2,064 Domestic xed income 23.8% 747 Laboratory Corp. of America $2,390 9.6% $295 $2,095 815 Armstrong World Industries $2,060 8.0% $1,625 $435 24.5% 748 Tampa Fire & Police $2,380 5.7% $2,380 816 University of Notre Dame $2,056 9.8% $2,056

749 East Bay Municipal Utility $2,376 3.5% $1,853 $523 817 Dartmouth College $2,051 9.7% $145 $1,906 Domestic equity 22.4% 750 Graphic Packaging $2,369 8.7% $1,145 $1,224 818 Industrial Workers Timber $2,051 8.1% $1,696 $355 22.5% 751 MPERS $2,362 -7.7% $2,362 819 Magna Int’l of America $2,042 $2,042

752 Syngenta $2,359 9.1% $756 $1,603 820 Sodexo $2,034 4.6% $2,034 Non-U.S. equity 15.2% 753 Carpenters, W. Washington $2,354 8.1% $1,793 $561 821 Teva USA $2,033 6.3% $2,033 15.5% 754 Talen Energy $2,353 7.9% $1,880 $473 822 TOTAL $2,021 8.4% $1,256 $765

755 Mastercard $2,350 9.5% $364 $1,986 823 UFCW International, D.C. $2,020 8.1% $1,932 $88 Private equity 2020 9.6% 756 Best Buy $2,343 14.6% $2,343 824 Devon Energy $2,019 8.5% $1,175 $844 2019 9.3% 757 Colorado County $2,343 9.7% $2,343 825 SEPTA $2,019 9.2% $1,725 $294

758 Fort Worth Employees $2,341 1.4% $2,341 826 SS&C Technologies $2,019 9.8% $2,019 Real estate equity

759 Owens Corning $2,335 9.0% $898 $1,437 827 Fulton County $2,018 8.4% $1,362 $656 8.1% 8.1% 760 Carpenters, Illinois $2,334 8.2% $2,245 $89 828 Keysight Technologies $2,013 8.5% $2,013

761 Analog Devices $2,333 55.8% $2,333 829 Avery Dennison $2,006 8.8% $854 $1,152 Global equity

762 Syracuse University $2,310 9.8% $2,310 830 Detroit General Retirement $2,005 -5.8% $2,005 7.8% 6.8% 763 Christian Brothers $2,309 8.2% $1,627 $682 831 Snap-on $2,005 8.3% $1,299 $706

764 Stanley Black & Decker $2,297 9.7% $144 $2,153 832 AkzoNobel (NA) $2,002 9.4% $363 $1,639 Alternative investments

765 Enbridge $2,284 8.8% $1,012 $1,272 833 Tallahassee City $1,997 -20.0% $1,244 $753 7.2% 6.9% 766 Louisiana Muni. Police $2,284 6.0% $2,284 834 First Data $1,991 9.6% $231 $1,760

767 MedStar Health $2,284 $2,284 835 Old Republican International $1,989 9.2% $513 $1,476 Global/non-U.S. xed income

768 IBEW Local 103 $2,283 4.6% $1,230 $1,053 836 Owens-Illinois $1,987 8.3% $1,307 $680 2.5%

769 Carnegie Mellon University $2,279 9.8% $2,279 837 Gap $1,983 12.5% $1,983 2.8% 770 Wawa $2,274 $2,274 838 Intuit $1,981 12.9% $1,981 Cash 771 Fidelity National $2,269 11.1% $2,269 839 Dana $1,979 8.3% $1,308 $671 2.0%

772 Stanislaus County $2,268 -0.2% $2,268 840 Nassau County Deferred Comp. $1,978 9.7% $1,978 1.9% 773 Teamsters Trucking, N.E. $2,264 -7.1% $2,264 841 Skadden, Arps, Slate $1,978 9.8% $70 $1,908 Other 774 CHS $2,255 8.9% $932 $1,323 842 Newmont Mining $1,976 8.5% $1,157 $819 1.4%

775 Jones Lang LaSalle $2,250 17.0% $2,250 843 Brown University $1,970 9.9% $1,970 1.7%

776 Mutual of Omaha $2,247 8.6% $1,183 $1,064 844 MGM Resorts International $1,967 5.4% $1,967 777 Huntington Bancshares $2,241 8.8% $1,001 $1,240 845 Western Digital $1,964 $1,964 Top 1,000 DB funds 778 Laborers Local 731 $2,236 8.1% $1,668 $568 846 Aptiv $1,959 -0.8% $1,959

779 Operating Engineers Local 825 $2,227 8.2% $943 $1,284 847 S.C. Johnson & Son $1,950 2.5% $627 $1,323 Domestic xed income 24.2% 780 Cultural Institutions $2,224 8.2% $1,558 $666 848 GROWMARK $1,947 8.1% $1,448 $499 24.8% 781 Nielsen $2,221 9.5% $321 $1,900 849 Teamsters, Philadelphia $1,935 8.1% $1,935

782 Sappi Fine Paper $2,220 8.6% $1,230 $990 850 University of Louisville $1,926 $1,926 Domestic equity

783 Hy-Vee $2,216 1.9% $2,216 851 UFCW Midwest $1,918 8.1% $1,918 22.4% 22.6% 784 Laborers, Ohio $2,214 1.5% $2,214 852 Blue Cross/Shield of Mass. $1,910 8.5% $1,081 $829

785 McMaster-Carr Supply $2,210 8.6% $2,210 853 Dallas Police & Fire $1,910 -6.9% $1,910 Non-U.S. equity

786 FMC $2,208 8.2% $1,518 $690 854 Louisiana Deferred Comp. $1,906 -14.7% $1,906 15.2% 15.6% 2020 787 Hilton Hotels $2,208 9.5% $367 $1,841 855 Masco $1,900 -3.4% $680 $1,220 2019 788 Swagelok $2,201 10.3% $2,201 856 Telephone & Data Systems $1,900 26.6% $1,900 Private equity

789 Graybar Electric $2,200 9.1% $714 $1,486 857 NV Energy $1,897 8.6% $996 $901 9.5% 9.1% 790 Denver Employees $2,186 -6.8% $2,186 858 Cook County Deferred Comp. $1,878 9.7% $1,878

791 Aerojet Rocketdyne $2,179 8.6% $1,119 $1,060 859 Woodward $1,876 9.6% $176 $1,700 Real estate equity

792 TechnipFMC USA $2,178 9.1% $671 $1,507 860 Penske Truck Leasing $1,875 9.1% $533 $1,342 7.9%

793 Lehigh Hanson $2,177 8.5% $1,270 $907 861 Carpenters, Twin Cities $1,873 8.1% $1,873 7.9% 794 University of Oregon $2,173 9.9% $2,173 862 National Railroad Passenger $1,872 9.3% $467 $1,405 Global equity 795 Latham & Watkins $2,162 9.6% $241 $1,921 863 Louisiana Firefighters $1,867 6.7% $1,867 7.6%

796 Vulcan Materials $2,136 8.8% $1,000 $1,136 864 Northeastern University $1,867 9.8% $1,867 6.6% 797 MidAmerican Energy $2,133 9.0% $769 $1,364 865 YRC Worldwide $1,864 8.6% $1,042 $822 Alternative investments 798 Teamsters, Central Pa. $2,133 -1.4% $1,084 $1,049 866 First American $1,854 10.0% $1,854 7.2%

799 Alaska Electrical $2,121 1.5% $1,929 $192 867 Bemis $1,850 9.0% $676 $1,174 7.0% 800 Windstream $2,117 8.8% $888 $1,229 868 National Football League $1,846 8.1% $1,846 Global/non-U.S. xed income 801 Office Depot $2,111 8.8% $932 $1,179 869 TECO Energy $1,845 8.8% $811 $1,034 2.6%

802 Trader Joe’s $2,106 12.5% $2,106 870 San Diego County Def. Comp. $1,844 11.0% $1,844 2.9% 803 Cincinnati City $2,103 -11.0% $2,103 871 Levi Strauss $1,843 8.5% $1,019 $824 Cash 804 Iowa Administrative Services $2,097 9.7% $2,097 872 Peabody $1,843 8.9% $759 $1,084 1.9%

805 National Oilwell Varco $2,092 9.5% $326 $1,766 873 LafargeHolcim US $1,842 8.8% $812 $1,030 1.8% 806 University of Maine $2,086 9.8% $39 $2,047 874 Food & Commercial Local 27 $1,839 8.1% $1,830 $9 Other 807 Allianz of America $2,080 9.1% $642 $1,438 875 Louisiana Schools $1,833 -1.1% $1,833 1.5%

808 Transocean $2,080 8.3% $1,385 $695 876 Kohl’s $1,832 8.7% $1,832 1.7%

809 Dover $2,079 9.2% $584 $1,495 877 Puget Sound Energy $1,830 8.8% $793 $1,037 Pensions & Investments February 8, 2021 | 25 THE LARGEST RETIREMENT FUNDS

Rank Sponsor Assets Change Total DB Total DC Rank Sponsor Assets Change Total DB Total DC

878 Suffolk County Deferred Comp. $1,827 9.7% $1,827 946 First Horizon National $1,598 8.6% $911 $687 Aggregate asset mixes As of Sept. 30. 879 CPS Energy $1,826 6.2% $1,826 947 Fujitsu America $1,597 2.6% $1,597 Top 200 DC funds 880 Bank of the West $1,811 9.2% $475 $1,336 948 L Brands $1,596 -2.7% $1,596 881 Hanesbrands $1,811 8.6% $964 $847 949 Wayne County $1,596 5.5% $1,074 $522

Domestic equity 882 IBEW Local 68, District 8 $1,802 8.2% $1,222 $580 950 Independence Blue Cross $1,595 8.6% $859 $736 39.0% 883 Teamsters, N.Y. State Conf. $1,801 8.1% $1,801 951 California State University $1,594 9.9% $1,594 39.6% 884 SKF USA $1,799 8.5% $992 $807 952 IBEW Local 26 $1,592 8.7% $722 $870 Target date 885 Carpenter Technology $1,796 8.5% $1,048 $748 953 Steelcase $1,592 -10.4% $1,592 22.6% 886 Fortune Brands Home & Sec. $1,786 8.9% $726 $1,060 954 BorgWarner $1,591 9.5% $254 $1,337 23.5% 887 Evonik (NA) $1,785 9.1% $574 $1,211 955 Hanover Insurance $1,591 9.0% $549 $1,042 888 Wolters Kluwer $1,784 9.6% $161 $1,623 956 MBTA Retirement $1,575 -10.1% $1,575 Cash 889 Cooper Tire & Rubber $1,779 8.4% $1,126 $653 957 SRI International $1,575 9.8% $1,575 15.2% 890 Panasonic USA $1,772 9.3% $437 $1,335 958 Birmingham City $1,569 7.8% $1,569 14.8% 891 Tacoma Employees $1,766 -2.6% $1,766 959 Sabre Holdings $1,566 9.3% $373 $1,193 Stable value 2020 892 New Jersey Transit $1,764 -25.3% $1,764 960 El Paso Fire & Police $1,565 2.6% $1,565 6.6% 2019 893 American Fed. of Musicians $1,744 -1.7% $1,744 961 IBEW Local 58 $1,560 8.1% $894 $666 6.9% 894 BHP-Billiton $1,743 9.2% $497 $1,246 962 Howard Hughes Medical $1,558 9.9% $1,558

Fixed income 895 Yum Brands $1,739 8.6% $901 $838 963 National Fuel Gas $1,553 5.9% $1,098 $455 6.2% 896 Boy Scouts of America $1,737 7.7% $1,615 $122 964 CONSOL Energy $1,546 8.8% $690 $856 5.4% 897 Essentia Health $1,736 9.9% $1,736 965 Pension Plan for Insurance $1,544 7.5% $1,544 898 Memphis Light Gas & Water $1,731 12.4% $1,731 966 DLA Piper $1,539 9.5% $238 $1,301 Non-U.S. equity 899 Marine Engineers $1,730 8.1% $1,217 $513 967 Carpenters, Greater Pa. $1,535 8.1% $1,058 $477 5.2% 900 AFSCME $1,729 8.1% $1,530 $199 968 Brown-Forman $1,532 8.5% $860 $672 5.4% 901 Reform Pension $1,729 7.5% $1,729 969 AAA N. Calif., Nev. & Utah $1,531 8.3% $1,067 $464 Annuities 902 Timken $1,726 9.2% $467 $1,259 970 Electrolux $1,531 8.3% $1,029 $502 0.9% 903 Twin City Hospital, Nurses $1,726 8.1% $1,726 971 Huntsman $1,526 8.8% $668 $858

0.2% 904 Iron Workers 40, 361, 417 $1,719 8.1% $605 $1,114 972 Albemarle $1,523 8.9% $613 $910

905 Operating Engineers Local 324 $1,718 8.1% $1,547 $171 973 Automotive Industries $1,518 8.1% $1,467 $51 In ation protection 0.4% 906 Rio Tinto America $1,715 -1.2% $957 $758 974 Darden Restaurants $1,517 9.4% $299 $1,218 0.3% 907 Operating Engineers Local 15 $1,710 8.2% $1,710 975 Mattel $1,513 9.3% $369 $1,144 908 Baltimore City $1,709 -6.5% $1,709 976 Smiths Group $1,501 9.2% $370 $1,131

Other 909 Baltimore County $1,709 -42.4% $1,709 977 Middlesex County $1,500 3.1% $1,500 3.9% 910 Lexmark International $1,709 9.1% $535 $1,174 978 Engility $1,498 9.7% $56 $1,442 3.9% 911 Chicago Transit Authority $1,706 -8.9% $1,706 979 Mosaic $1,494 9.2% $409 $1,085

912 W.R. Grace $1,702 8.4% $1,041 $661 980 Western & Southern Life $1,494 8.1% $1,115 $379 981 Conduent $1,486 9.7% $72 $1,414 Top 1,000 DC funds 913 Stationary Engineers 39 $1,697 8.2% $1,462 $235 914 Saint Louis University $1,695 9.9% $1,695 982 IBEW Local 1 $1,486 8.2% $1,486 Domestic equity 915 Keurig Dr Pepper $1,679 9.5% $203 $1,476 983 OGE Energy $1,485 8.8% $647 $838 38.8% 916 San Luis Obispo County $1,678 3.7% $1,469 $209 984 Weil, Gotshal & Manges $1,483 8.9% $600 $883

39.9% 917 Republic Services $1,677 6.6% $1,677 985 MARTA $1,476 7.8% $1,476

918 Sealed Air $1,673 9.6% $145 $1,528 986 Questar $1,474 8.3% $959 $515 Target date 23.0% 919 Milliken $1,664 9.3% $334 $1,330 987 Arkansas State Highway $1,472 -4.1% $1,472 988 TRW Automotive Holdings $1,471 9.3% $372 $1,099 23.7% 920 Bertelsmann $1,663 9.6% $201 $1,462 921 Crane $1,658 9.2% $499 $1,159 989 Teamsters Local 639 $1,469 8.1% $1,469

Cash 922 Flowserve $1,658 9.1% $532 $1,126 990 DeKalb County Employees $1,464 3.9% $1,464 13.9% 923 TimkenSteel $1,653 8.2% $1,161 $492 991 Duquesne Light $1,460 7.9% $1,188 $272 13.5% 2020 924 Agilent Technologies $1,649 11.3% $1,649 992 Operating Eng. 94, 94a, 94b $1,456 8.2% $1,456 Stable value 2019 925 Hubbell $1,643 8.9% $671 $972 993 GCIU Employer $1,448 8.1% $1,448 6.9% 926 Portland General Electric $1,642 9.0% $653 $989 994 Orlando City $1,443 7.8% $1,443

7.2% 927 Underwriters Laboratories $1,642 9.4% $313 $1,329 995 A.O. Smith $1,441 8.3% $947 $494

928 Deluxe $1,641 3.6% $1,641 996 Iron Workers, Southern Ohio $1,440 8.2% $981 $459 Fixed income 929 Carpenters, N. Central States $1,638 8.1% $1,514 $124 997 Teamsters Local 705 $1,436 8.1% $1,436 6.6% 930 Tulare County $1,636 0.8% $1,636 998 Marathon Oil $1,433 9.4% $261 $1,172 5.7% 931 CFI $1,635 8.5% $907 $728 999 Pentair $1,432 9.5% $205 $1,227

Non-U.S. equity 932 Alliant Energy $1,634 9.4% $329 $1,305 1,000 Cambridge Retirement $1,429 4.6% $1,429 5.6% 933 Bricklayers International $1,634 -0.4% $1,440 $194 201-1,000 total $3,401,582 5.6% 934 Caesars Entertainment $1,632 1.0% $1,632 Top 1,000 total $12,092,163

Annuities 935 Meritor $1,625 8.4% $988 $637 0.8% 936 Milwaukee County $1,625 -3.3% $1,625 0.2% 937 ONE Gas $1,619 -7.3% $925 $694 938 Navy Exchange $1,618 7.5% $1,618 In ation protection 939 Southern Electrical Retirement $1,615 8.2% $1,615 0.4% 940 Crown Holdings $1,612 8.1% $1,210 $402 0.3% 941 Franklin Resources $1,612 5.9% $1,612

Other 942 Bombardier Motor $1,609 8.9% $710 $899

4.0% 943 Laborers National $1,608 8.1% $1,608

3.9% 944 Arizona Deferred Comp. $1,607 9.1% $1,607

945 Equifax $1,603 9.0% $600 $1,003 26 | February 8, 2021 Pensions & Investments THE LARGEST RETIREMENT FUNDS

Funds using strategy cited Among the top 200 funds as of Sept. 30.

Defined benefit Number Number Number Defined contribution Number

Domestic active equity 64 Domestic enhanced indexed bonds 7 Hedge fund of funds 20 Passive equity 60

Domestic passive equity 65 Global/non-U.S. active bonds 42 Energy 25 REITs 28

Domestic enhanced indexed equity 19 Global/non-U.S. passive bonds 8 Commodities 19 Passive bonds 51

Non-U.S. active equity 68 Developed markets bonds, active 12 Private equity 85 Inflation-protected securities 34

Non-U.S. passive equity 61 Developed markets bonds, passive 2 Buyouts 56 Commodities 13

Non-U.S. enhanced indexed equity 7 Emerging markets debt, active 25 Venture capital 49 Target-date strategies 63

Global active equity 37 Emerging markets debt, passive 4 Mezzanine 25 Custom 27

Global passive equity 20 Cash 85 Distressed debt 37 Off-the-shelf 26

Developed markets equity, active 64 Inflation-protected securities 28 Private credit/debt 31 CITs 41

Developed markets equity, indexed 61 High-yield 51 ETFs 3 ETFs 1

Emerging markets equity, active 58 Bank loans 15 Mutual funds 5 Managed accounts 14

Emerging markets equity, indexed 30 Domestic real estate equity 54 Commingled vehicles 29 Mutual funds 39

REITs 37 Non-U.S. real estate equity 32 Separate accounts 34 Separate accounts 43

Factor-based equity 14 Timber 27

Domestic active bonds 76 Infrastructure 39

Domestic passive bonds 41 Hedge funds (direct investments) 46

Funds with the most DB assets managed internally DB assets by investment vehicle Among the top 200 funds; assets are in millions as of Sept. 30. Among the top 200 funds as of Sept. 30. Data in parentheses are previous year. Domestic Global/non- Domestic Non-U.S. Global fixed U.S. fixed Alternative Rank Fund Total equity equity equity income income investments Separate Commingled 1 California Public Employees $308,991 $117,160 $90,686 $83,252 $17,334 $559 accounts vehicles 2 California State Teachers $129,187 $63,526 $21,862 $35,606 $585 72.6% 27.2% (72.1%) (27.4%) 3 New York State Common $111,169 $65,185 $216 $45,768 4 Georgia Teachers $85,027 $45,876 $13,170 $1,372 $23,856 Mutual funds 5 Florida State Board $77,393 $41,595 $4,225 $17,146 $7,658 0.1% 6 New York State Teachers $73,767 $41,346 $55 $18,153 (0.4%) 7 New Jersey $59,157 $21,873 $15,159 $17,668 ETFs 8 Wisconsin Investment Board $58,773 $36,612 $14,755 $3,252 0.1% 9 Texas Teachers $58,035 $12,706 $20,042 $22,195 (0.1%) 10 North Carolina $56,165 $13,244 $31,134 $11,787 11 Ohio State Teachers $52,922 $19,221 $9,662 $595 $13,952 $8,315 12 Ohio Public Employees $44,194 $18,189 $4,124 $19,656 $2,225 13 Alabama Retirement $38,964 $19,815 $5,313 $5,341 $5,266 Funds with DB assets in hybrid 14 Tennessee Consolidated $34,967 $16,903 $3,173 plans 15 Colorado Employees $34,522 $13,452 $4,962 $4,451 $11,410 $247 Among the top 200; assets are in millions as of Sept. 30. 16 Pennsylvania School Employees $30,347 $3,011 $2,595 $11,489 $13,252 17 Virginia Retirement $25,473 $8,545 $5,248 $11,680 Fund Assets Fund Assets 18 Michigan Retirement $21,183 $13,275 $3,369 $4,539 Texas County & District $32,368 Ernst & Young $8,761 19 Washington State Board $21,021 $21,021 Northrop Grumman $32,014 Ascension $6,714 20 Honeywell $16,884 Texas Municipal Retire. $29,989 Prudential Financial $5,614 21 Oregon Public Employees $15,208 $6,864 $1,230 $7,114 California State Teachers $15,044 Exelon $2,327 22 Texas Employees $14,700 $5,556 $2,884 $6,260 23 Corteva $14,637 $3,511 $1,666 $1,004 $7,987 $349 $120 Citigroup $12,869 Providence Health $669 24 Alaska Retirement $12,729 $8,395 $4,334 Merck $10,521 Kaiser $16 25 South Dakota $8,984 $3,057 $1,695 MetLife $9,185

Funds with the most DB Funds with the most Growth of LDI Funds with the most DB assets in factor-based DB assets in LDI strategies in assets in inflation- strategies strategies DB plans protected securities Among the top 200; assets are in millions as Among the top 200; assets are in millions as Among the top 200 funds; assets Among the top 200; assets are in millions as of Sept. 30. of Sept. 30. are in billions as of Sept. 30. of Sept. 30. $180 Rank Fund Assets Rank Fund Assets Rank Fund Assets $160 1 California Public Employees $62,909 1 Raytheon Technologies $22,709 1 Pennsylvania School Empl. $9,401 $140 2 Oregon Public Employees $9,042 2 United Parcel Service $21,309 2 New York City Retirement $8,687 $120 3 New York State Common $6,958 3 General Electric $17,067 3 Wisconsin Invest. Board $7,088 $100 4 Los Angeles County Employees $4,914 4 Kaiser $15,562 4 Massachusetts PRIM $3,391 5 Alaska Retirement $3,356 5 Caterpillar $9,948 $80 5 New York State Common $3,219 6 Operating Engineers International $3,063 6 MetLife $8,530 $60 6 Ohio Public Employees $2,844 7 Maryland State Retirement $2,507 7 Honeywell $8,381 $40 7 Maryland State Retirement $2,533 8 Oklahoma Teachers $2,424 8 Prudential Financial $8,035 $20 8 Indiana Public Retirement $2,329 9 Illinois State Board $891 9 Exelon $7,447 $0 9 Connecticut Retirement $1,868 2015 2016 2017 20192018 2020 10 Illinois Municipal $757 10 Merck $4,764 10 Idaho Public Employees $1,747 Pensions & Investments February 8, 2021 | 27 THE LARGEST RETIREMENT FUNDS

Hawaii How the data were compiled Pensions & Investments gathered information for this report, published CONTINUED FROM PAGE 15 annually since 1974, in three steps. estic xed income; 7% real estate, Questionnaires were sent to more than 1,300 fund sponsors in P&I’s consisting of 70% core, 20% value- database. The largest 1,000 were identi ed from completed question- added and 10% opportunistic; and naires, follow-up phone calls and emails, and database searches. 5% real return, consisting of 50% Data for sponsoring entities that did not respond were culled from pub- public in ation-linked and 50% pri- lished annual or quarterly reports and Form 5500s led with the Depart- vate in ation-linked securities. ment of Labor. In 2015, the retirement system P&I’s survey generally covers the 12 months ended Sept. 30, 2020. In revamped that allocation, the most cases where no information was available from the fund, or the data were notable change of which was the older than June 30, 2020, P&I calculated estimates to Sept. 30. creation of a 20% target to crisis risk A few survey questions were expanded on this year in an effort to fully offset, a new asset class aimed at capture emerging trends and talking points. offsetting drawdowns in the broad P&I previously asked only whether de ned bene t plans incorporated growth asset class, the target of ESG factors into the investment process or whether a policy was in place which was dropped to 63%. to encourage the hiring of money managers owned by minorities, women, Mr. Chattergy left the pension the disabled or veterans. This year, plans were asked how much they had fund in February 2018 after it ex- ANOTHER WAY: Elizabeth Burton said Hawaii doesn't have traditional asset classes. invested under ESG principles and how much was invested in ESG man- perienced heavy losses from put- dates. Additionally, plan sponsors with an MWDV hiring policy were asked write equity options. Following his fying strategies has a target of 28%. managed futures are now catego- how many managers they allocate to and how much they have invested exit, Elizabeth Burton, managing The broad growth asset class is rized as liquid defensive strategies with those managers. director, quantitative strategies broken down into public growth, while long-duration Treasuries are Lastly, following Labor Department guidance on including private equity group at the $57.3 billion Maryland private growth and real assets. Pub- classi ed as “Treasury duration cap- in ERISA-covered de ned contribution plans, private equity has been State Retirement & Pension Sys- lic growth assets include what the ture,” which can be found in both the added as a speci c breakdown of DC investments. tem, Baltimore, took over as CIO. pension fund calls “stabilized eq- liquid defensive and illiquid diversi- Dollar amounts generally are rounded to the nearest million; in certain Ms. Burton said in a telephone uity” managers, into which it places fying portfolios. tables and charts, they are rounded to billions. The aggregate asset mixes interview that the survey is really low-volatility and option-based eq- As of Sept. 30, the pension fund’s represent the weighted averages of all reported allocations for the respec- hard for the system to complete be- uity portfolios, Ms. Burton said. actual allocation was 76.2% broad tive funds. cause they “don’t assign classes like Diversifying strategies is broken growth, 20.4% diversifying strate- All data in this special report are ©2021 Crain Communications Inc. small-cap equities, U.S. equities, down into liquid defensive, liquid gies, 3.3% other (mostly cash) and Reproduction without permission is prohibited.  even xed income, for example.” diversifying and illiquid diversify- 0.1% opportunities.  “Within growth, you could have ing portfolios. Both liquid defensive portions of real estate, you could and liquid diversifying portfolios have portions of equity or credit or include “alternative return capture” xed-income investments,” she said. managers, categories that many NSTEIN F “The driver has to be growth risk.” funds and the P&I survey might ER AB de ned as either absolute return or B O E Z Z Simpler approach hedge funds. H I A 2019 asset allocation study re- Diversifying strategies also fea- T sulted in the risk-based approach ture managers formerly allocated to J being further simpli ed to two risk- the now-eliminated crisis risk offset A S C based portfolios, eliminating crisis asset class, which invested in trend- O D B A R risk offset as its own asset class. following managed futures, alterna- S W Broad growth now has a target of tive risk premium and long-dura- L E V Y A 72% and a portfolio called diversi- tion U.S. Treasuries. Trend-following ANNOUNCINGTHE WINNERSOFTHE 22ND ANNUAL BERNSTEIN FABOZZI/JACOBS LEVY AWARDS Growth of public vs. corporate DB plans The Bernstein Fabozzi/Jacobs Levy Awards were established in 1999, on the 25th anniversary of Among the top 200 funds; assets are in billions as of Sept. 30. The Journal of Portfolio Management, to honor Editors Peter Bernstein and Frank Fabozzi for their extraordinary contributions and to promote research excellence in the theory and practice of portfolio $4,400 management. The annual awards, co-founded and generously funded by Jacobs Levy Equity Management, $4,000 consist of a $5,000 prize for the Best Article and $2,500 prizes for each of three Outstanding Articles. This $3,600 year, two articles tied for Best Article. As several articles tied for the third Outstanding award, two articles were granted Outstanding Article. $3,200 $2,800 All articles that appeared in The Journal of Portfolio Management from 2020 were eligible for the award and * $2,400 Public plans voted on by subscribers of the journal. $2,000 Corporate plans $1,600 BEST ARTICLES $1,200 Alpha vs. Alpha: Selection, Timing, and Factor Exposures $800 from Different Factor Models $400 ANANTH MADHAVAN, ALEKSANDER SOBCZYK, AND ANDREW ANG $0 2010 2011 20132012 2014 2015 2016 2017 20192018 2020 FUND MANAGER SELECTION 2020 Divergent ESG Ratings ELROY DIMSON, PAUL MARSH, AND MIKE STAUNTON NOVEMBER 2020 Growth of in ation- protected securities Reprints OUTSTANDING ARTICLES in DB plans Smart Beta: The Good, the Bad, and the Muddy Among the top 200 funds; assets  2-color, 4-color JAMES WHITE AND VICTOR HAGHANI are in billions as of Sept. 30. MARCH 2020  Glossy, matte $110 Portfolio Optimization with Active, Passive, and Factors: $100  500-1,000,000 Removing the Ad Hoc Step $90  One-sided, two- ROGER ALIAGA-DIAZ, GIULIO RENZI-RICCI, ANKUL DAGA, AND HARSHDEEP AHLUWALIA $80 sided booklet MARCH 2020 $70 $60 $50 It’s your choice. $40 Contact Laura Picariello $30 (732) 723-0569 $20 [email protected] $10 *Articles authored by Frank Fabozzi were not eligible for an award. Authors were not permitted to vote for their own articles. $0 The ballots were tallied by Pageant Media, Ltd. 2015 2016 2017 20192018 2020 28 | February 8, 2021 Pensions & Investments THE LARGEST RETIREMENT FUNDS

Funds with the most DB assets in domestic equity Among the top 200; assets are in millions as of Sept. 30.

Total assets Active assets Passive assets Enhanced indexed assets Rank Fund Assets Rank Fund Assets Rank Fund Assets Rank Fund Assets

1 California Public Employees $120,085 1 California Public Employees $51,573 1 California Public Employees $68,512 1 United Parcel Service $4,216

2 New York State Common $77,542 2 Texas Teachers $26,013 2 New York State Common $65,185 2 Pennsylvania School Empl. $3,829

3 California State Teachers $73,070 3 Georgia Teachers $16,251 3 California State Teachers $63,468 3 New York State Teachers $3,456

4 New York City Retirement $68,450 4 Ohio State Teachers $13,648 4 New York City Retirement $56,696 4 Connecticut Retirement $3,440

5 Florida State Board $46,276 5 New York State Common $12,357 5 Florida State Board $41,326 5 Maryland State Retirement $2,817

6 Georgia Teachers $45,876 6 New York City Retirement $11,305 6 New York State Teachers $38,156 6 Minnesota State Board $2,718

7 New York State Teachers $45,117 7 Tennessee Consolidated $10,478 7 Georgia Teachers $29,625 7 California State Teachers $2,375

8 Minnesota State Board $29,952 8 Virginia Retirement $10,093 8 Minnesota State Board $23,214 8 Teamsters, Western Conf. $1,829

9 Texas Teachers $28,700 9 Illinois Municipal $10,067 9 New Jersey $21,873 9 San Diego County $1,779

10 Ohio Public Employees $22,948 10 Colorado Employees $8,732 10 Nevada Public Employees $21,281 10 West Virginia Investment $1,587

Funds with the most DB assets in non-U.S. equity Funds with the most Among the top 200; assets are in millions as of Sept. 30. DB assets in Total assets Active assets Passive assets emerging markets Rank Fund Assets Rank Fund Assets Rank Fund Assets equity 1 California Public Employees $93,629 1 Texas Teachers $36,098 1 California Public Employees $60,051 Among the top 200; assets are in millions as of Sept. 30. 2 California State Teachers $53,737 2 Florida State Board $33,710 2 California State Teachers $22,009

3 New York City Retirement $41,800 3 California Public Employees $33,578 3 New York State Teachers $15,307 Total assets 4 Texas Teachers $36,406 4 New York City Retirement $32,208 4 New York State Common $12,938 Rank Fund Assets 5 Florida State Board $35,738 5 California State Teachers $31,728 5 New Jersey $12,319 1 California Public Employees $23,182 6 New York State Common $30,662 6 Ohio Public Employees $17,961 6 New York City Retirement $9,592 2 New York City Retirement $17,831 7 Ohio Public Employees $22,085 7 New York State Common $17,724 7 Nevada Public Employees $9,249 3 California State Teachers $14,494 8 New York State Teachers $20,691 8 Ohio State Teachers $17,395 8 Minnesota State Board $9,162 4 Texas Teachers $14,246 9 North Carolina $19,444 9 Massachusetts PRIM $12,445 9 North Carolina $8,217 5 Florida State Board $7,370 10 Ohio State Teachers $17,495 10 North Carolina $11,227 10 Georgia Teachers $7,401 6 Maryland State Retirement $6,494

7 New York State Teachers $6,119

8 New Jersey $5,131

Funds with the most DB assets in global equity 9 New York State Common $4,520 Among the top 200; assets are in millions as of Sept. 30. 10 Massachusetts PRIM $4,438 Total assets Active assets Passive assets Rank Fund Assets Rank Fund Assets Rank Fund Assets Active assets Rank Fund Assets 1 Wisconsin Investment Board $59,230 1 Wisconsin Investment Board $32,803 1 California University $33,056 1 Texas Teachers $14,598 2 California University $39,331 2 New York State Common $12,472 2 Wisconsin Investment Board $26,427 2 California State Teachers $14,493 3 General Electric $21,369 3 General Electric $11,381 3 South Carolina Public Empl. $14,513 3 New York City Retirement $13,434 4 Kaiser $16,645 4 Washington State Board $10,616 4 Los Angeles County Empl. $13,209 4 California Public Employees $8,648 5 South Carolina Public Empl. $15,153 5 Raytheon Technologies $7,718 5 Kaiser $10,439 5 Florida State Board $7,370 6 Los Angeles County Empl. $13,209 6 Colorado Employees $7,152 6 General Electric $9,988 6 Maryland State Retirement $6,353 7 New York State Common $12,688 7 Florida State Board $6,923 7 Operating Engineers Int’l $7,941 7 New York State Common $4,520 8 Operating Eng. International $11,004 8 Arkansas Teachers $6,823 8 Texas Municipal Retirement $6,681 8 Massachusetts PRIM $4,438 9 Washington State Board $10,616 9 Northrop Grumman $6,751 9 Maine Public Employees $4,794 9 Connecticut Retirement $3,852 10 Florida State Board $9,330 10 Virginia Retirement $6,372 10 Florida State Board $2,407 10 Ohio State Teachers $3,841

Funds with the most DB assets in developed markets equity Passive assets Rank Fund Assets Among the top 200; assets are in millions as of Sept. 30. 1 California Public Employees $14,534 Total assets Active assets Passive assets 2 New York City Retirement $4,397 Rank Fund Assets Rank Fund Assets Rank Fund Assets 3 New York State Teachers $4,087

1 California Public Employees $70,447 1 Florida State Board $33,264 1 California Public Employees $45,517 4 New Jersey $3,108

2 Wisconsin Investment Board $55,221 2 Wisconsin Investment Board $31,470 2 California University $33,058 5 Wisconsin Investment Board $2,676

3 California University $40,444 3 New York State Common $25,676 3 Wisconsin Investment Board $23,751 6 Tennessee Consolidated $2,163

4 California State Teachers $39,243 4 California Public Employees $24,930 4 California State Teachers $22,008 7 Georgia Teachers $1,752

5 New York State Common $38,831 5 Texas Teachers $21,500 5 Los Angeles County Empl. $14,111 8 United Parcel Service $1,459

6 Florida State Board $37,699 6 New York City Retirement $19,878 6 New York State Common $13,155 9 Alabama Retirement $1,374

7 New York City Retirement $25,073 7 California State Teachers $17,235 7 New York State Teachers $11,220 10 Minnesota State Board $1,201

8 Texas Teachers $22,161 8 Ohio Public Employees $14,405 8 Kaiser $10,439

9 New York State Teachers $19,282 9 Ohio State Teachers $14,149 9 Nevada Public Employees $9,249

10 Kaiser $18,425 10 Virginia Retirement $12,021 10 New Jersey $9,211 Pensions & Investments February 8, 2021 | 29 THE LARGEST RETIREMENT FUNDS

Funds with the most DB assets in domestic fixed income Among the top 200; assets are in millions as of Sept. 30.

Total assets Active assets Passive assets Enhanced indexed assets Rank Fund Assets Rank Fund Assets Rank Fund Assets Rank Fund Assets

1 California Public Employees $102,623 1 California Public Employees $103,107 1 Texas Teachers $19,269 1 California State Teachers $26,703

2 New York City Retirement $70,617 2 New York City Retirement $64,353 2 Wisconsin Investment Board $17,094 2 Minnesota State Board $3,207

3 New York State Common $47,732 3 New York State Common $47,732 3 Nevada Public Employees $12,705 3 Raytheon Technologies $2,656

4 IBM $43,397 4 North Carolina $31,134 4 Florida State Board $12,375 4 Corteva $2,044

5 California State Teachers $40,013 5 New York State Teachers $25,983 5 Los Angeles County Employees $8,400 5 Wespath (UMC) $322

6 North Carolina $31,134 6 Georgia Teachers $23,856 6 Massachusetts PRIM $8,276 6 Exelon $196

7 Florida State Board $29,581 7 Virginia Retirement $23,022 7 Pennsylvania School Empl. $7,502 7 Ohio Police & Fire $171

8 Wisconsin Investment Board $28,287 8 United Parcel Service $21,309 8 Oregon Public Employees $7,322

9 New York State Teachers $25,983 9 Washington State Board $21,021 9 New York City Retirement $6,264

10 General Electric $24,158 10 General Electric $20,889 10 Ohio Public Employees $5,737

Funds with the most DB assets in global/non-U.S. fixed income Funds with the Among the top 200; assets are in millions as of Sept. 30. most DB assets in

Total assets Active assets Passive assets bank loans Among the top 200; assets are in Rank Fund Assets Rank Fund Assets Rank Fund Assets millions as of Sept. 30. 1 California Public Employees $24,176 1 California Public Employees $24,306 1 California University $1,540 Rank Fund Assets 2 Iowa Public Employees $10,400 2 Texas Employees $6,779 2 Indiana Public Retirement $1,343 1 Oregon Public Employees $2,660 3 Texas Employees $6,779 3 Ohio Public Employees $5,985 3 Maryland State Retirement $612 2 New York City Retirement $2,659 4 Ohio Public Employees $5,985 4 Pennsylvania School Empl. $4,386 4 Virginia Retirement $502 3 Los Angeles County Empl. $2,426

5 Pennsylvania School Empl. $4,386 5 Illinois Teachers $3,962 5 New Mexico Public Empl. $422 4 Massachusetts PRIM $1,872 5 6 Illinois Teachers $3,962 6 New York State Teachers $2,864 6 Arkansas Teachers $194 Kaiser $542 6 Illinois Municipal $541 7 Indiana Public Retirement $3,704 7 Ohio School Employees $2,735 7 Illinois State Board $186 7 Illinois State Board $414 8 New York State Teachers $2,864 8 Indiana Public Retirement $2,361 8 California Public Employees -$130 8 Maryland State Retirement $385 9 9 Ohio School Employees $2,735 Los Angeles Water & Power $2,342 9 California Public Empl. $337 10 Los Angeles Water & Power $2,342 10 Arkansas Teachers $2,093 10 Kentucky Teachers $272

Funds with the most DB assets in developed markets fixed income Funds with the Among the top 200; assets are in millions as of Sept. 30. most DB assets

Total assets Active assets Passive assets in REITs Among the top 200; assets are in Rank Fund Assets Rank Fund Assets Rank Fund Assets millions as of Sept. 30. 1 California Public Employees $11,040 1 California Public Employees $11,170 1 Indiana Public Retirement $1,343 Rank Fund Assets 2 Pennsylvania School Empl. $4,000 2 Pennsylvania School Empl. $4,000 2 California Public Employees -$130 1 California Public Empl. $6,509 3 3 Indiana Public Retirement $2,880 New York State Teachers $2,864 2 New York State Teachers $2,929 4 New York State Teachers $2,864 4 Ohio School Employees $2,682 3 California State Teachers $2,837

5 Ohio School Employees $2,682 5 Los Angeles Water & Power $2,342 4 Florida State Board $1,819 5 6 Los Angeles Water & Power $2,342 6 Indiana Public Retirement $1,537 Ohio State Teachers $1,374 6 Massachusetts PRIM $1,295 7 Mississippi Employees $1,416 7 Mississippi Employees $1,416 7 Virginia Retirement $1,191 8 New York City Retirement $1,292 8 New York City Retirement $1,292 8 Texas County & District $956 9 Consolidated Edison $770 9 Consolidated Edison $770 9 Texas Employees $828 10 Wespath (UMC) $457 10 Wespath (UMC) $457 10 Pennsylvania School Empl. $818

Funds with the most DB assets in emerging markets fixed income Funds with the most Among the top 200; assets are in millions as of Sept. 30. DB assets in high-

Total assets Active assets Passive assets yield securities Among the top 200; assets are in Rank Fund Assets Rank Fund Assets Rank Fund Assets millions as of Sept. 30. 1 California Public Employees $13,136 1 California Public Employees $13,136 1 California University $1,540 Rank Fund Assets 2 Ohio Public Employees $5,985 2 Ohio Public Employees $5,985 2 Maryland State Retirement $612 1 California Public Empl. $14,942 3 Wisconsin Investment Board $2,068 3 Wisconsin Investment Board $2,068 3 Virginia Retirement $502 2 New York City Retirement $10,898 4 California University $1,540 4 Ohio State Teachers $1,153 4 Illinois State Board $186 3 New Jersey $7,016

5 Maryland State Retirement $1,170 5 Massachusetts PRIM $902 4 General Electric $3,505 5 6 Ohio State Teachers $1,153 6 Indiana Public Retirement $824 Teamsters, Western Conf. $3,308 6 Virginia Retirement $3,049 7 Virginia Retirement $1,106 7 Los Angeles County Empl. $821 7 Texas Employees $2,867 8 Massachusetts PRIM $902 8 Texas Municipal Retirement $775 8 New Mexico Educational $2,409 9 9 Indiana Public Retirement $824 Illinois State Universities $667 9 Ohio Public Employees $2,378 10 Los Angeles County Empl. $821 10 South Carolina Public Empl. $654 10 Maryland State Retirement $2,349 30 | February 8, 2021 Pensions & Investments THE LARGEST RETIREMENT FUNDS

Growth of Growth of real Growth of private Growth of hedge Alternatives infrastructure estate equity in equity in DB plans fund assets in CONTINUED FROM PAGE 15 assets in DB plans DB plans Among the top 200 funds; assets DB plans Among the top 200 funds; assets Among the top 200 funds; assets are in billions as of Sept. 30. Among the top 200 funds; assets nessed big increases, but not as are in billions as of Sept. 30. are in billions as of Sept. 30. $550 are in billions as of Sept. 30. much as infrastructure. Real estate assets of the top 200 retirement $55 $440 $500 $220 plans are up 22.7% over the fi ve- $50 $4000 $200 year period and 119.6% over the $4500 $45 $3600 $1800 10 years ended Sept. 30. REITs are $4000 up 19.7% for the fi ve years and up $40 $3200 $1600 24.4% over the 10-year period. In- $3500 $35 $2800 $1400 frastructure rose 147.3% for the fi ve $3000 years and 709.8% for the 10 years $30 $2400 $1200 ended Sept. 30, from a base of only $2500 $25 $200 $100 $5.1 billion in 2010. $200 Institutional investors were es- $20 $160 $80 $150 pecially interested with infrastruc- $15 $120 $60 ture with a green or environmental, $100 social and corporate governance $10 $80 $40 tilt, Mr. Delaney said. $5 $40 $50 $20 At the same time, there was a lot $0 $0 $0 $0 of concern among investors about 2015 20172016 2018 2019 2020 2015 20172016 2018 2019 2020 2015 20172016 2018 2019 2020 2015 20172016 2018 2019 2020 the future of real estate, he said. REITs are publicly traded and easily accessible and were a place tainty around the future of offi ces “We’re not looking to overweight recommending that clients increase to 10% and 14%, respectively. where investors could get liquidity and hotels, Mr. Delaney said. “It’s or add a lot of investment in those their investments to essential ser- Rounding out the top fi ve in real in the fi rst half of 2020, he said. hard to know long term how the areas, but we don’t think they vice sectors such as warehouses estate are the $162.7 billion Texas “REITs probably sold potentially rollout of the vaccines will play out should be completely ignored in nursing homes, logistics and data Teacher Retirement System, Aus- more than they should have,” Mr. and what it will take for people to terms of their long-term potential,” centers, he said. tin, up 2.75% to $22.2 billion in the Delaney said. But the price move- feel comfortable staying in a hotel he said. All but one of the top fi ve real third position. TRS staff planned ment indicated investors expected or going back to work at an offi ce.” Willis Towers Watson has been estate equity investors had posi- to commit $4.2 billion in 2020, with a “pretty dire future for REITs go- tive growth during the 12-month 50% of the total going into co-in- ing forward,” he said. period. The $426.2 billion Califor- vestments. By comparison, the pen- In the year ended Sept. 30, the nia Public Employees’ Retirement sion plan had invested $6.2 billion FTSE Nareit All REITs return was System, Sacramento, was in the top in real estate in 2019. -13.3% and the FTSE Nareit All Eq- Nicole Delaney position on P&I list of the largest Next were the $128.9 billion uity REITs was -12.15%. investors in real estate equity with Washington State Investment assets up 19.7% to $44.4 billion. Board, Olympia, up 3.2% to $19 bil- Cutting back on REITs Nearly 90% of CalPERS’ real estate lion, and the $226.4 billion New During the 12-month period portfolio is in core real estate, with York State Common Retirement ended Sept. 30, a number of the re- all of the core portfolio in separate- Fund, Albany, down 3% to $16 bil- tirement plans in this year’s survey ly managed accounts, according to lion in real estate. cut or liquidated their REIT expo- the pension plan’s latest semian- A 4-percentage-point drop in sure. Among them were: nual report. CalPERS has been re- returns for the 12-month period $38.6 billion Indiana Public ducing its legacy, non-core portfolio was a factor in this year’s results. Retirement System, Indianapolis, and increasing its exposure to core The NCRIEF Open-end Diversi- which cut its REIT portfolio 50.3% stabilized real estate. In 2016, 55% fi ed Core Equity index gross of fees to $86 million. of CalPERS portfolio was in core. total return was 1.39% for the year $23.5 billion Illinois State The $259.2 billion California ended Sept. 30, down from 5.59% Universities Retirement System, State Teachers’ Retirement System, over the previous year. The return Champaign, eliminated its $373 West Sacramento, in second place, for the period was also less than million REIT allocation. saw its real estate assets grow by the ODCE’s fi ve-year annualized $225.4 billion New York City 5% to $35.7 billion. In July, CalSTRS return of 6.64%. Retirement Systems sold off REITs moved its asset allocation closer in 2020, down to $449 million from to the long-term targets adopted Private equity rises $1.5 billion the year before. in January, increasing its private Among the other alternative in- Meanwhile, transactions in the equity and real estate allocations, vestment sectors tracked by P&I, plain-vanilla real estate equity which due to the coronavirus pan- private equity rose 9.6% in the year sectors such as offi ce, hotels, mul- demic were a larger percentage ended Sept. 30 to $438.5 billion, tifamily and retail fell due to the of its asset mix because of equity with buyouts up 17.8% to $258.3 bil- pandemic, Mr. Delaney said. GOING GREEN: John Delaney said institutions are especially interested in infrastruc- market volatility. Each asset class lion and venture capital up 5.6% to There’s a fair amount of uncer- ture investments that also have a focus on environmental or governance issues. was boosted by 1 percentage point $45.4 billion.

Funds with DB plans Funds with DB assets Funds with DB plans Funds with DB assets using ESG factors invested under using hiring policy for managed by WMDV- Among the top 200 as of Sept. 30. ESG principles WMDV-owned managers owned managers

ϐ Alabama ϐ Los Angeles City Among the top 200; assets are in millions as Among the top 200 as of Sept. 30. Among the top 200; assets are in millions Retirement Employees of Sept. 30. as of Sept. 30. ϐ Arkansas Teachers ϐ Massachusetts PRIM ϐ Bayer ϐ Los Angeles Total Number of Fund Assets managers ϐ California Public County Employees Fund assets Mandates ϐ California State ϐ New Jersey Teachers Employees ϐ Maryland State California State Teachers $257,856 $2,930 ϐ New York City New York State Common $20,073 114

ϐ California State Retirement ϐ CommonSpirit Health Retirement New York State Common $226,400 $11,350 Maryland State Retirement $12,057 57 Teachers ϐ Minnesota State ϐ Connecticut ϐ New York State ϐ California Board Ohio Public Employees $240 $240 Retirement Common Illinois Teachers $10,151 30 University ϐ New Jersey ϐ Exelon ϐ New York State Illinois State Board $7,725 66 ϐ Colorado ϐ New York City ϐ Federal Reserve Teachers Employees Retirement Employees ϐ Northrop Grumman Indiana Public Retirement $5,097 10

ϐ CommonSpirit ϐ New York State ϐ Illinois Municipal ϐ Ohio Public Massachusetts PRIM $4,375 26 Health Common ϐ Illinois State Board Employees Federal Reserve ϐ Connecticut ϐ Ohio Public ϐ Ohio State Teachers $3,002 5 ϐ Illinois Teachers Employees Retirement Employees ϐ ϐ Illinois State Texas Teachers ϐ Federal Reserve ϐ Providence Health Texas Teachers $2,002 Universities ϐ United Airlines Employees ϐ Washington State ϐ Indiana Public Holdings Exelon $1,684 26 ϐ Illinois State Board Retirement ϐ Virginia Retirement Board California State Teachers $806 9 ϐ Wisconsin ϐ Kaiser ϐ Wespath (UMC) ϐ Illinois State Investment Board Michigan Retirement $783 5 Universities ϐ Eli Lilly ϐ Wisconsin Investment Board ϐ Kaiser ϐ Maryland State Retirement Pensions & Investments February 8, 2021 | 31 THE LARGEST RETIREMENT FUNDS

Private equity generally offers returns more than public equity Funds with the most DB assets in alternatives market, which is important to in- Among the top 200 funds; assets are in millions as of Sept. 30. vestors when fi xed-income returns are so low, WTW’s Mr. Delaney said. Total assets Real estate equity Private equity What’s more, public equities Rank Fund Assets Rank Fund Assets Rank Fund Assets are fairly concentrated, and thus, more risky with the stock markets 1 California State Teachers $83,416 1 California Public Employees $44,411 1 California Public Employees $28,142 moving along with fi ve companies 2 California Public Employees $78,728 2 California State Teachers $35,682 2 California State Teachers $26,766 on a given day,” Mr. Delaney said. 3 Texas Teachers $22,246 3 Washington State Board $24,012 3 Texas Teachers $62,959 “You’re reliant on the success of 4 Washington State Board $18,982 4 Texas Teachers $23,784 the FAANG (Facebook Inc., Ama- 4 New York State Common $53,978 5 New York State Common $15,971 5 New York State Common $22,655 zon.com Inc, Netfl ix inc, Apple Inc 5 Washington State Board $48,956 and Alphabet Inc.) stocks. If you’re 6 Florida State Board $14,385 6 Oregon Public Employees $18,455 6 Florida State Board $41,762 trying to generate equity-like re- 7 New York City Retirement $10,366 7 Michigan Retirement $15,206 turns, private equity looks attrac- 7 New York City Retirement $37,968 8 North Carolina $9,463 8 New York City Retirement $14,064 tive and removes the concentration risk,” he added. 8 Oregon Public Employees $37,855 9 New York State Teachers $9,041 9 Florida State Board $12,677 But there are risks to investing in 9 Pennsylvania School Employees $36,815 10 Ohio Public Employees $8,705 10 Virginia Retirement $11,526 the asset class. 10 Virginia Retirement $34,624 Whether you are investing in Buyouts Energy 11 Michigan Retirement $34,549 venture capital or leveraged buy- Rank Fund Assets Rank Fund Assets outs, one risk is that the companies 12 North Carolina $28,492 you are buying are unproven com- 1 California State Teachers $20,841 1 Texas Teachers $8,286 modities and could become dis- 13 Massachusetts PRIM $27,541 2 New York State Common $20,254 2 North Carolina $2,393 tressed, he said. Investors also need 14 Wisconsin Investment Board $24,264 3 California Public Employees $20,085 3 Washington State Board $2,373 to be compensated for the illiquid- 4 Washington State Board $17,514 4 Minnesota State Board $1,738 ity risk they are taking compared to 15 Illinois Teachers $23,464 5 Texas Teachers $16,023 5 New Jersey $1,704 public equities, Mr. Delaney added. 16 Ohio Public Employees $23,336 CalPERS is also in the top po- 6 Oregon Public Employees $13,823 6 Virginia Retirement $851 17 Maryland State Retirement $20,919 sition on P&I’s private equity list, 7 New York City Retirement $9,090 7 Texas County & District $817 with assets up 6.9% to $28.1 billion. 18 Ohio State Teachers $20,876 8 Massachusetts PRIM $8,427 8 Maryland State Retirement $811 At a Jan. 20 stakeholder forum, 19 Arizona State Retirement $19,461 interim CIO Dan Bienvenue noted 9 Florida State Board $8,318 9 Pennsylvania School Employees $773 that CalPERS is underweight its 20 Los Angeles County Employees $19,143 10 Virginia Retirement $7,616 10 Ohio Police & Fire $749 8% policy target to private equity, which is one of the fund's “arrows Private credit/debt Infrastructure Commodities in its quiver” to attain its 7% expect- Rank Fund Assets Rank Fund Assets Rank Fund Assets ed rate of return. “Candidly, we have been in- 1 Arizona State Retirement $8,702 1 California State Teachers $5,465 1 Pennsylvania School Employees $6,261 consistent in how we deployed” to 2 New York State Common $7,039 2 California Public Employees $5,347 2 Indiana Public Retirement $2,285 private equity, he said. Investing 3 North Carolina $6,189 3 New York State Common $3,191 3 Los Angeles County Empl. $2,145 more capital in private equity is a 4 Pennsylvania School Employees $5,229 4 Oregon Public Employees $3,040 4 California State Teachers $1,799 focus of the private equity team, Mr. Bienvenue said. He acknowl- 5 Florida State Board $3,632 5 Pennsylvania School Employees $2,784 5 Ohio Public Employees $1,160 edged the risks of private equity 6 Illinois Teachers $3,211 6 New York City Retirement $2,770 6 Los Angeles Fire & Police $941 compared to stocks are illiquid- 7 Orange County $1,451 7 Virginia Retirement $1,872 7 Oregon Public Employees $714 ity in having capital locked up for 8 Virginia Retirement $1,366 8 Los Angeles County Employees $1,683 8 Florida State Board $452 10 years or more and higher costs than public equities. 9 San Francisco City & County $1,307 9 Maine Public Employees $1,663 9 Texas Teachers $385 Also impacting CalPERS’ results 10 Exelon $1,270 10 Washington State Board $1,377 10 Citigroup $289 is that its private equity portfolio underperformed its benchmark by 93 Venture capital Distressed debt Mezzanine basis points to a net return of 2.3% Rank Fund Assets Rank Fund Assets Rank Fund Assets in the year ended Sept. 30. Over the three years, it underperformed 1 Texas Teachers $4,510 1 California Public Employees $1,662 1 Maryland State Retirement $1,189 its benchmark by 98 basis points 2 Washington State Board $4,322 2 California State Teachers $1,654 2 New York State Teachers $656 to a net return of 7.2%; by 152 ba- 3 California State Teachers $2,897 3 Oregon Public Employees $1,440 3 California State Teachers $418 sis points to a net return of 7.8% in 4 Maryland State Retirement $2,137 4 Massachusetts PRIM $1,297 4 Michigan Retirement $331 the fi ve-year period; and 226 basis points of underperformance to a net 5 Florida State Board $1,976 5 New York City Retirement $1,188 5 Raytheon Technologies $210 return of 11.3% in the 10-year period, 6 Texas County & District $1,864 6 New Jersey $1,007 6 Texas Municipal Retirement $172 according to a November report to 7 North Carolina $1,800 7 New York State Common $906 7 California Public Employees $126 the investment committee. 8 Oregon Public Employees $1,753 8 Alaska Retirement $849 8 Virginia Retirement $125 9 Ohio Public Employees $1,728 9 Washington State Board $816 9 Teamsters, Western Conference $95 10 Michigan Retirement $1,721 10 Pennsylvania School Employees $708 10 New Mexico Educational $93 Funds with DB plans using an external Funds with the most DB assets in hedge funds cybersecurity Among the top 200 funds; assets are in millions as of Sept. 30. vendor Total Direct Funds of Total Direct Funds of Rank Fund assets investments funds Rank Fund assets investments funds

Among the top 200 as of Sept. 30. 1 California State Teachers $13,461 $13,461 16 Ohio Public Employees $3,655 $3,655 2 Michigan Retirement $13,163 $3,707 $9,456 17 Kaiser $3,622 $3,622 ϐ Alabama Retirement 3 Virginia Retirement $11,507 $11,507 18 Texas County & District $3,295 $3,295 ϐ Florida State Board $8,258 $3,254 ϐ Illinois State Board 4 Texas Teachers $8,258 19 Indiana Public Retirement $2,885 $369 ϐ Illinois Teachers 5 Massachusetts PRIM $6,447 $5,845 $602 20 United Parcel Service $3,041 $3,041 ϐ Maine Public Employees 6 Pennsylvania School Employees $6,146 $6,146 21 Texas Municipal Retirement $2,942 $2,942

ϐ New York City Retirement 7 Wisconsin Investment Board $5,698 $5,698 22 Connecticut Retirement $2,575 $2,575 ϐ Oklahoma Teachers 8 Florida State Board $5,597 $4,406 $1,191 23 New Jersey $2,500 $1,945 $555 ϐ Pennsylvania School Employees 9 Illinois Teachers $5,460 $5,156 $304 24 North Carolina $2,481 $2,481 10 New York State Common $5,121 $5,121 25 Eli Lilly $2,200 $1,298 $902 11 Missouri Schools & Education $4,487 $4,487 26 Los Angeles County Employees $1,978 $1,815 $163 12 Maryland State Retirement $4,466 $4,466 27 Citigroup $1,966 $1,966 13 California University $4,375 $4,362 $13 28 Ohio Police & Fire $1,647 $754 $893 14 Oregon Public Employees $4,075 $4,075 29 West Virginia Investment $1,590 $1,590 15 New York City Retirement $3,813 $3,795 $18 30 Texas Employees $1,298 $1,298 32 | February 8, 2021 Pensions & Investments THE LARGEST RETIREMENT FUNDS

The largest DC funds by type Among the top 200 funds; assets are in millions as of Sept. 30.

401(k) funds 401(a) funds 457 funds 403(b) funds Rank Fund Assets Rank Fund Assets Rank Fund Assets Rank Fund Assets

1 IBM $55,606 1 Washington State Board $16,521 1 New York State Def. Comp. $28,804 1 California University $19,984

2 Raytheon Technologies $45,736 2 Florida State Board $12,219 2 New York City Def. Comp. $19,788 2 New York City Teachers $16,723

3 Northrop Grumman $27,414 3 SUNY $11,600 3 Ohio Deferred Comp. $15,800 3 SUNY $11,280

4 General Electric $24,348 4 National Electric $10,194 4 Los Angeles Co. Deferred $13,311 4 Kaiser $9,387

5 United Parcel Service $23,483 5 Alaska Retirement $6,547 5 California Savings Plus $8,208 5 Ascension $8,872

6 Costco Wholesale $23,000 6 Indiana Public Retirement $5,949 6 Minnesota State Board $8,145 6 Providence Health $6,784

7 United Airlines Holdings $22,900 7 California University $5,034 7 Wisconsin Investment Board $6,479 7 California State Teachers $1,320

8 American Airlines $21,525 8 Tennessee Consolidated $4,041 8 Washington State Board $5,119 8 Oklahoma Teachers $154

9 Oracle $18,543 9 Ascension $3,153 9 New Jersey $4,772 9 North Carolina $24

10 Intel $16,061 10 Illinois State Universities $3,020 10 Illinois State Board $4,758 10 Maine Public Employees $14

Funds with the most DC assets in Growth of target-date Funds with DC plans offering auto target-date strategies strategies in DC plans enrollment Among the top 200 funds; assets are in millions as of Sept. 30. Among the top 200 funds; assets are Among the top 200 funds as of Sept. 30. in billions as of Sept. 30. Total ϐ Accenture Employees ϐ Michigan Municipal Rank Fund assets Custom Off-the-shelf $390

$360 ϐ Alaska Retirement ϐ Federal Retirement ϐ Michigan Retirement 1 Federal Retirement Thrift $138,073 $138,073 Thrift $330 ϐ American Airlines ϐ Northrop Grumman ϐ Ford Motor 2 California University $11,053 $11,053 ϐ Bayer ϐ Oklahoma Public $300 ϐ California University ϐ General Electric Employees $270 3 Intel $10,762 $10,762 ϐ Caterpillar ϐ Illinois State Board ϐ Providence Health $240 ϐ Illinois State ϐ Prudential Financial 4 Kaiser $10,342 $10,342 ϐ CenturyLink $210 Universities ϐ Citigroup ϐ Raytheon Technologies 5 United Airlines Holdings $8,010 $1,580 $6,430 $180 ϐ Indiana Public ϐ Consolidated Edison ϐ Tennessee $150 Retirement Consolidated 6 IBM $7,702 $7,159 $543 ϐ Corteva $120 ϐ Intel ϐ Texas Employees

$7,571 ϐ Costco Wholesale ϐ 7 American Airlines $7,571 $90 IBM ϐ United Airlines Holdings ϐ Electrical Industry, Joint ϐ Kaiser 8 Providence Health $7,310 $60 Board ϐ Virginia Retirement ϐ Eli Lilly $30 ϐ Ernst & Young ϐ Wespath (UMC) 9 General Electric $7,259 ϐ Merck $0 ϐ Exelon $6,948 2015 20172016 2018 2019 2020 ϐ MetLife 10 Northrop Grumman $6,948 ϐ Federal Reserve

“Auto enrollment is the pri- Since 2014, the 401(k) plan has DC plans mary driver of participation,” said Growth of 457 Growth of passive had a 5% deferral of salary for auto Mr. Petersen, commenting on the assets in DC plans fixed income in enrollment. Participants can opt DC industry in general. “We have out, but 92% of new hires stay in the CONTINUED FROM PAGE 15 Among the top 200 funds; assets DC plans not seen a lot of movement on the plan, Mr. Potvin said. If participants are in billions as of Sept. 30. Among the top 200 funds; assets according to Pensions & Invest- state level (for pro-457 laws). It’s a defer the full 5%, they can receive a are in billions as of Sept. 30. ments’ annual survey. The 457 plans’ heavy lift.” $180 3% match. The 457 plan “is just an- assets rose 56.4% from $93.6 billion An interactive report created by $100 other way to save,” said Mr. Potvin, fi ve years prior. NAGDCA shows nine states allow $160 describing it as a legacy plan. $90 “Assets seemed to increase, auto enrollment for deferred com- The 457 and 401(k) plans have $140 thanks to the stock market,” said pensation plans; 25 prevent it; and $80 the same investment options: a tar- Matt Petersen, executive director 16 allow partial auto enrollment. $120 get-date series, four fi xed-income of the National Association of Gov- The nine states that allow it are $70 choices, nine equity options and a ernment Defi ned Contribution Ad- Georgia, Utah, Colorado, Nebraska, $100 $60 self-directed brokerage. The target- ministrators Inc. West Virginia, Tennes- date series is the qualifi ed default Based on anecdotal see, Virginia, Michigan $80 $50 investment alternative in the 401(k) accounts, “participant and Rhode Island. $40 plan for new hires. “A huge percent- engagement is up as Even if a state al- $60 age of new hires do this,” he said. peoples’ comfort in- lows auto enrollment $30 Over the years, the plans “have creases with virtual under any or some cir- $40 moved to more indexed equity, $20 meetings and online cumstance, there’s no which has had a signifi cant impact use,” said Mr. Petersen, guarantee plans will $20 $10 on costs,” Mr. Potvin said. Only two referring to 457 plans offer it. In some states, of the nine equity options are ac- $0 $0 adjusting their com- auto enrollment may 2015 20172016 2018 2019 2020 2015 20172016 2018 2019 2020 tively managed. munication efforts be- be generally banned, “State employment, and there- cause one-on-one and JOIN IN: Matt Petersen but exceptions can be fore our eligible membership popu- group meetings have sees auto enrollment made if this option is contributions to a benefi t program, “We looked at utilization and lation, has declined somewhat over been eliminated due to as the 'primary driver of collectively bargained. such as a retirement plan,” NAG- pricing,” said Mr. Boehmer, add- the past year,” Mr. Potvin added. health concerns. participation.' “Auto features have DCA says. “No plans in the state cur- ing that the plan conducted focus “But this is more due to attrition Despite the overall been proven to work,” rently offer automatic enrollment.” groups with employees and retirees (or) failure to replace departing asset gains, improvement has been said Robert Boehmer, vice president Mr. Boehmer said neither leg- to assess their interests. Since 2014, employees than to any signifi cant muted due to state laws that in ef- of NAGDCA. “It drives better par- islators nor governors — in both he noted that participation has in- job actions by the state. In fact, fect prevent or discourage the use ticipation. It drives better wellness.” major political parties — have pro- creased to 38% from 18%. when agencies proposed furloughs of auto enrollment by 457 plans. Mr. Boehmer also is executive vided enough support for specifi c The plan also switched to one re- as part of their budget reduction Unlike 401(k) plans and other director of the State of Nevada authorizing legislation for auto en- cord keeper from two in 2015. “We efforts, both the governor’s offi ce ERISA-covered plans, the non- Public Employees’ Deferred Com- rollment in 457 plans. cut administrative costs in half,” Mr. and leadership in the General As- ERISA 457 plans are governed by pensation Program, Carson City. Still, his plan’s assets have Boehmer said. sembly resisted those proposals state laws that can prohibit, restrict The NAGDCA interactive report climbed to $1.1 billion from $524 that had the greatest impact on the or discourage auto enrollment due describes Nevada as allowing some million in 2014 when Mr. Boehmer Allowed, but not implemented state’s workforce.” to state anti-garnishment laws. auto enrollment. became the executive offi cer. He Because Georgia allows auto These laws were designed many “Wage deductions are permitted attributed the gains, in part, to re- enrollment for public plans, the Improve participation years ago and weren’t aimed at re- under the Nevada Administrative vamping and consolidating the in- state’s 401(k) plan offers it but the Auto enrollment would improve tirement plans, but the impact on Code without expressly requiring vestment lineup — now at 17 op- 457 plan does not, said Mr. Potvin participation, Shelly Schueller, di- the plans has been an unintended employee authorization when for tions vs. 33 — and replacing revenue of the Employees Retirement Sys- rector of the $6.5 billion Wisconsin consequence. the purpose of making employee sharing with a per-participant fee. tems of Georgia. Deferred Compensation Program, Pensions & Investments February 8, 2021 | 33 THE LARGEST RETIREMENT FUNDS

Funds with the most Funds with the most DC assets in passive DC assets in REITs ESOP funds Profit-sharing funds equity Among the top 200 funds; assets are in Rank Fund Assets Rank Fund Assets millions as of Sept. 30. Among the top 200 funds; assets are in 1 Publix Super Markets $9,542 1 Intel $6,774 millions as of Sept. 30. Rank Fund Assets 2 Northrop Grumman $3,188 2 Southwest Airlines $5,647 Rank Fund Assets 1 IBM $1,420 3 Raytheon Technologies $2,539 3 National Elevator Industry $3,120 1 Federal Retirement Thrift $350,930 2 Raytheon Technologies $304 4 Consolidated Edison $78 4 Electrical Ind., Joint Board $1,910 2 IBM $25,744 3 Federal Reserve Employees $288 3 Raytheon Technologies $19,955 4 Washington State Board $243 4 Northrop Grumman $16,397 5 Corteva $213 5 New York City Def. Comp. $12,710 6 California University $203 6 American Airlines $10,055 7 Accenture $138 7 California University $9,278 8 New York City Teachers $9,249 8 Exelon $132 9 Honeywell $7,339 9 Illinois State Universities $132 10 Citigroup $7,163 10 SUNY $120

Funds with DC plans Funds with DC plans Funds with DC Funds with DC offering auto escalation offering white-label options plans offering plans offering Among the top 200 funds as of Sept. 30. Among the top 200 funds as of Sept. 30. stand-alone an ESG focus Among the top 200 funds retirement ϐ American Airlines ϐ Eli Lilly ϐ Alaska Retirement ϐ Kaiser as of Sept. 30. ϐ Ascension ϐ Merck ϐ American Airlines ϐ Eli Lilly income options

ϐ Bayer ϐ MetLife ϐ California Savings Plus ϐ Los Angeles County Deferred Among the top 200 funds as ϐ Alaska Retirement ϐ California Savings Plus ϐ Michigan Retirement ϐ California University ϐ Merck of Sept. 30. ϐ California Savings Plus

ϐ Caterpillar ϐ ϐ New Jersey Caterpillar ϐ MetLife ϐ California University ϐ CenturyLink ϐ CenturyLink ϐ Minnesota State Board ϐ New Mexico Public ϐ Colorado Employees ϐ Colorado Employees ϐ Citigroup ϐ Citigroup ϐ National Rural Electric ϐ Empoyees ϐ Costco Wholesale CommonSpirit Health ϐ Colorado Employees ϐ Colorado Employees ϐ New Jersey ϐ Illinois State Board ϐ Illinois State Universities ϐ Consolidated Edison ϐ Northrop Grumman ϐ Corteva ϐ New York City Deferred ϐ Oracle ϐ Illinois State Universities ϐ New Jersey ϐ Corteva ϐ Costco Wholesale Compensation ϐ ϐ Costco Wholesale ϐ Providence Health Indiana Public Retirement ϐ New York State Def. Comp. ϐ ϐ North Carolina Exelon ϐ Michigan Retirement ϐ Exelon ϐ Prudential Financial ϐ Oregon Public Employees ϐ Florida State Board ϐ Oracle ϐ Federal Reserve ϐ Minnesota State Board ϐ Raytheon Technologies ϐ Pennsylvania School Empl. ϐ Honeywell ϐ Oregon Public Employees ϐ Employees New Jersey ϐ Target ϐ Providence Health ϐ Ford Motor ϐ Illinois State Universities ϐ Raytheon Technologies ϐ New York State Deferred Comp. ϐ SUNY ϐ Honeywell ϐ United Airlines Holdings ϐ Indiana Public Retirement ϐ United Airlines Holdings ϐ Oregon Public Employees ϐ ϐ Intel ϐ Virginia Retirement ϐ Intel ϐ Virginia Retirement ϐ Raytheon Technologies Washington State Board

ϐ IBM ϐ Wespath (UMC) ϐ IBM ϐ Wespath (UMC) ϐ SUNY ϐ Wisconsin Investment Board

ment,” she said. “However, some government Virtual participation helping everyone remain on track plan sponsors still use paper forms to enroll, change deferrals and process withdrawals, Like defi ned contribution plan executives, enrollment totals were 3% off Acknowledging the chal- so modernizing is a focus.” record-keeper offi cials wish 457 plans would 2020 forecasted models as a lenge of many states’ anti- Modernizing can be a challenge. “This is gain greater opportunities to use auto enroll- result of our decision to quickly garnishment laws that prevent not always possible for some government ment, but they add that sponsors have taken pivot to a virtual model, as well 457 plans from offering auto plan sponsors who have limited software and other steps — many of them virtual — to as work with our plan sponsors enrollment, Mr. Cruz said human capital constraints along with privacy educate and encourage participants amid to provide relevant education managed accounts may be a considerations,” said Ms. Heyel, whose the economic ravages of the coronavirus and guidance in a manner of way to increase participants’ company is a record keeper for 3,700 gov- pandemic. their choosing.” investing. ernment 457 and 401(a) plans, according to “If I look back on 2020, I would say that The virtual model approach, “The use of managed ac- internal company data as of Sept. 30. generally, participants and plan sponsors he added, allowed for “shifting counts is still pretty much in In response to the pandemic, sponsors worked hard together to hold the course the workday to accommodate its infancy” in 457 plans, he “moved participant educational meetings while serving their communities through the participants at the hour and day UPGRADE: Amy Heyel said said. to virtual and adjusted any manual on-site pandemic,” said Orlando Cruz, senior vice of their choosing. Traditional some sponsors encounter About 10% of his fi rm’s cli- forms to electronic intake processing,” she president and chief revenue and sales offi cer 9-to-5 of meeting participants hurdles in trying to keep ents offer managed accounts. added. “This was also the case with RFP at ICMA-RC, the Washington-based public- during the workday is a thing of their technology up to date. “You can’t just put this on the responses, which are typically required in sector record keeper. the past.” (record-keeping) platform and hard copy.” “Among clients, 457 contribution deferral ICMA-RC experienced a signifi cant in- leave it up to participants,” he added. “You Among the most popular topics offered by rates were static across our participant base crease in participant attendance for certifi ed need to offer advice.” a Voya digital platform are “navigating market between 2019 and 2020,” he added. fi nancial planning webinars — up 386% in Sponsors are trying to expand participa- volatility, staying the course and fi nancial “Local government staffi ng excluding 2020 vs. 2019. tion and investing through a greater use of wellness,” Ms. Heyel said. Sponsors also education was down 4.1% for the 12-month “Additionally, to simulate the workplace technology such as online enrollment, said are using “more personalized messaging” to period ending November 2020. What we face-to-face experience, we have instituted a Amy Heyel, the Savannah, Ga.-based senior participants and providing more demographic heard from our clients was that there were policy that all client interactions must occur vice president and national practice leader of information to record keepers “so we can temporary furloughs or delayed hiring of via videoconference unless the client prefers government markets for Voya Financial Inc. target under-savers.” staff,” Mr. Cruz said. “Our new employee otherwise,” he added. “Many 457 plans do have online enroll- — ROBERT STEYER

Madison, wrote in an email. The ers would increase participation,” One example was a “free look” Sept. 30, tied with Virginia Retire- tional communication about mar- deferred compensation program she wrote. “I suspect that if it was trial period for a managed account ment System’s $3.7 billion deferred ket volatility and the CARES Act. is offered to state employees, and available, an employer match would service last year. “The average de- compensation plan, for the high- Although she hasn’t reviewed the current participation rate is ap- also improve participation.” ferral rate of those trying the man- est growth rate among the 25 larg- all 2020 data yet, the results so far proximately 42%. Although her program hasn’t aged account service increased est deferred compensation plans indicate that the plan “did not see The program is an optional ben- made major design changes re- from 6.28% to 7.33% and the aver- tracked by P&I. an appreciable decline in contribu- efi t for local government entities, cently, it “has worked to target spe- age number of investment options To cope with the pandemic, the tions during 2020,” Ms. Schueller such as counties, cities, villages and cifi c participants and categories of used increased from 2.64 to 8.52,” plan offered all meetings with par- said. “There was a larger amount of school districts, she explained. participants with additional out- she wrote. ticipants virtually and continues transaction activity during 2020, but More than 900 local governments reach, education and information,” The Wisconsin plan’s assets to do so, said Ms. Schueller, adding overall participation and contribu- participate. “Adding more employ- she wrote. grew by 20.2% for the year ended that plan offi cials provided addition amounts remained steady.” 34 | February 8, 2021 Pensions & Investments HIRINGS

Arizona Public Safety Person- emerging manager to run an interna- ment was to Strategic Value Special nel Retirement System, Phoenix, tional equity portfolio because of the Situations Fund V for up to $125 committed $25 million to Mission closure of incumbent manager FLORIDA SBA DISTRIBUTES $2.1 BILLION million. The fund,will focus on the BioCapital V. Progress Investment Management in Florida State Board of Administration, Tallahassee, disclosed $2.1 debt and assets of middle-market The $12.4 billion pension fund May. The assets have been parked billion in manager hires, commitments and investments in the fourth companies and “will seek to exert closed the commitment to the life with the pension fund’s short-duration quarter, said John Kuczwanski, communications manager, in an meaningful influence in both leading sciences venture capital fund on Jan. fixed-income managers since the email. financial restructurings and subse- 7, spokesman Christian Palmer closure. quently driving operational perfor- Within its strategic investments asset class, the board, which confirmed. As of Nov. 30, the pension The pension fund’s target alloca- mance.” oversees a total of $235 billion, including the $182.6 billion Florida fund’s actual allocation to global tion to international equities is 21%. The targets will be “asset-heavy, private equity was 24.8%; the target Investment consultant Callan Retirement System, committed $300 million each to Centerbridge old-economy businesses.” is 25%. assisted. Capital Partners IV and Cerberus Corporate Credit SBA, both dis- The division of investment’s report tressed debt funds. also noted a real asset commitment Brunel Pension Partnership, Fresno County (Calif.) Also, the board committed $200 million each to Blantyre Special of up to $100 million to Digital Colony Bristol, England, and Northern Employees’ Retirement Asso- Situations Fund II, a European special situations fund managed by Partners II and up to $50 million for a LGPS, Droylsden, England, selected ciation, hired State Street Global Blantyre Capital, and Carlyle Aviation Leasing Fund, a special co-investment vehicle alongside the PGIM Real Estate to manage Advisors to manage $150 million in a situations fund; made a $200 million direct hedge fund investment in fund, both managed by Digital Colony, allocations to U.K. affordable semi-active active domestic large-cap EQMC Europe Development Capital Fund, an absolute return fund the digital infrastructure unit of housing, according to their respective value equity portfolio, confirmed Doug Colony Capital. that invests in European small- and midcap companies, managed by websites. Kidd, investment officer for the $5.8 The funds’ investments will include PGIM Real Estate will manage up billion pension fund. Alantra EQMC Asset Management; and hired Edelweiss Alternative cellphone towers, small-cell networks to £250 million ($342 million), SSGA replaces AJO, which was Asset Advisors to run $200 million in a customized private credit and data centers. according to a separate news release terminated in August. The firm separate account. by the manager. ultimately shuttered at the end of the The board also committed $150 million to infrastructure fund Actis New Mexico State Investment Northern LGPS year. Verus Advisory, Energy 5. Council, Santa Fe, committed a total invested £150 million HAVE SOME NEWS? the pension fund’s Within private equity, the board committed $150 million to buyout of up to $250 million to three in PGIM Real Estate’s investment consultant, fund Waterland Private Equity Fund VIII; $115 million to Charlesbank alternative investment funds, said Please submit news of U.K. Affordable recommended the Equity Fund X and $10 million to Charlesbank Equity Overage Fund X, Charles Wollmann, spokesman for the Housing Fund, changes to David action. $29.8 billion endowment, in an email. both buyout funds managed by Charlesbank Capital Partners; $75 according to a news Schepp, news editor, at In addition, the The council at its Jan. 26 meeting release published on [email protected] board agreed to million to Arbor Investments V and $15 million to Arbor Debt Opportu- committed up to $125 million to its website Feb. 4. liquidate its $22 nities II, both private equity funds managed by Arbor Private Invest- Cerberus Real Estate Debt Fund, an “The U.K. has a severe housing million position within a senior ment Co.; ¥4 billion ($39 million) to NIC Fund II, a venture capital opportunistic real estate credit fund. shortage which urgently needs to be loan-plus fund managed by Eaton fund managed by Nippon Investment Co.; and $30 million to venture The fund is expected to invest in addressed. Patient long-term capital Vance. Mr. Kidd said the board initially capital fund SVB Capital Partners V. private and public real estate debt in such as ours is well placed to help invested in the fund to serve as a Finally, in real estate, the board committed $150 million to the U.S. and Europe. address this issue. We look forward spillover vehicle “if events became so Starwood Distressed Opportunity Fund XII, a distressed real estate The council also committed up to to working with PGIM Real Estate and extreme that this leveraged portfolio fund. $75 million to Ares European Property other investors over the coming years became attractive.” Since those Enhancement Partners III, a fund that Separately, the board terminated its three frontier markets equity to develop the product and deliver an conditions weren’t met, and since the is expected to make value-added managers following an evaluation of the global equity asset class’s exceptional housing product to amount in the portfolio was small investments in Europe. residents whilst also achieving a enough, the board deemed it risk and return relative to other opportunities. Finally, the council committed up to strong income-based return,” Ged unnecessary to maintain it. The managers — Aberdeen Standard Investments, First Sentier $50 million to JMI Equity Fund X, a Cooney, councillor and chairman of The money will be transferred into Investors and HSBC Global Asset Management — ran a total of $300 growth equity fund focusing on Northern LGPS, said in the release. FCERA’s core bond program. million. software companies in North America. Northern LGPS has £46 billion in Separately, the council extended assets. Japan’s Government Pension for four years BlackRock’s contract to A spokesman declined to disclose Investment Fund hired Hamilton funds, Mr. McCann said. fixed-income managers was not manage a $1.2 billion passive the Brunel’s allocation to the same Lane Advisors to manage a global The pension fund previously known. fixed-income strategy. fund. Brunel has £30 billion in diversified private equity allocation for invested $5 million in EnTrustPermal Investment consultant AndCo The current contract with Blackrock assets. the ¥167.5 trillion ($1.61 trillion) Special Opportunities Fund IV in Consulting assisted. expires Jan. 31. Tokyo-based pension giant. 2017. Japan’s Pension Fund Association GPIF’s announcement offered no As of Sept. 30, the pension fund’s Mitchells & Butlers, Birming- New York State Teachers’ for Local Government Officials, known details regarding the size of the actual allocation to alternatives was ham, England, has appointed XPS Retirement System, Albany, made as Chikyoren, hired one overseas allocation or the management fees 1.6%. Pensions Group as actuarial and three private equity commitments real estate manager, another to — information that the Japanese AndCo Consulting assisted investment adviser to the trustees of totaling up to $375 million, according oversee passive investments pension fund puts out once a year its two pension funds, a spokesman to a report prepared for the $120.5 benchmarked to ESG-focused indexes with the July release of its annual Howard County Retirement said. The plans for employees of the billion plan’s quarterly board meeting and three managers for active report for its fiscal year ended Plans, Ellicott City, Md., committed restaurant chain have a total £3 Jan. 28. domestic equity allocations. March 31. $10 million to MPE Partners III. billion ($4.1 billion) in assets. The commitments were made A posting to Chikyoren’s website on The announcement said the The joint committee for the Howard “We wanted to work with advisers during the fourth quarter. Each was Jan. 29 said the ¥24.3 trillion selection of Hamilton Lane was in line County Retirement Plan and the that were completely joined up in the approved by Thomas Lee, executive ($234.2 billion) Tokyo-based pension with the RFP the fund issued in April Howard County Police and Fire delivery of funding and investment director and CIO, without a full board fund hired Clarion Partners to manage 2017 “to implement alternative Employees’ Retirement Plan approved advice and would partner us on our vote. The pension system’s rules an allocation to overseas real estate. investments ‘multi-manager’ the commitment to the lower-middle- journey to buyout,” Jonathan Duck, allow the CIO to take action without a Separately, the pension fund hired strategies” through fund-of-funds market buyout fund at its Dec. 3 chairman of trustees, said in a news vote under certain circumstances. Sumitomo Mitsui Trust Bank to vehicles to pursue fund investments meeting, recently released meeting release. “XPS demonstrated a The plan committed up to $200 manage two passive ESG allocations, and co-investments. minutes show. pragmatic approach using market- million to GTCR Fund XIII, a large one benchmarked to the MSCI Japan GPIF hired Mitsubishi UFJ Trust and The two plans have a combined leading technology to help us achieve buyout fund that invests in, among ESG Select Leaders Index and the Banking Corp. as the allocation’s $1.2 billion in assets. As of Sept. 30, our strategic objectives and engage other things, financial services, other benchmarked to the S&P/JPX “gatekeeper” and Hamilton Lane as the plans’ actual allocation to private effectively with our members, their technology, health care, and business Carbon Efficient Index. the fund-of-funds manager. As of equity was 13.2%; the target is 10%. approach really stood out and we are services companies. It also commit- Finally, the fund announced it had GPIF’s latest report on its portfolio for Investment consultant NEPC delighted to be working with them,” ted up to $100 million to NMS Fund hired Asset Management One Co., the quarter ended Sept. 30, the assisted. he added. IV, a buyout fund managed by NMS Nissay Asset Management Corp. and fund’s combined allocation to Capital that concentrates on Nomura Asset Management Co. to alternative assets stood at only 60 Key West (Fla.) Utility Board New Jersey Division of investments in the health-care active management allocations to basis points or 0.6%, far short of the General Employees Retirement Investment, which handles services and business services domestic equities benchmarked 5% ceiling set in 2014. System invested $5 million in PIMCO investments for the $83.3 billion New sectors of the lower middle market in against the Tokyo Stock Price Index, Global Bond Opportunities Fund Jersey Pension Fund, Trenton, made North America; and up to $75 million including dividends. Hollywood (Fla.) Police (Unhedged). two private equity commitments and to Mill Point Capital Partners II, a Chikyoren did not provide further Officers’ Retirement System The $106 million pension fund’s one real asset commitment for an buyout fund focused on investments details, including the size of the hired EnTrust Global to manage $15 board approved the investment in the aggregate of up to $475 million, the in the industrial, information allocations. million in a hedge fund-of-funds active global fixed-income mutual fund division said Jan. 27. technology services and business portfolio. managed by Pacific Investment According to a report presented to services sectors of the lower middle Cook County Annuity & The $334 million pension fund’s Management Co. at its Dec. 15 the State Investment Council, one market in North America. Benefit Fund, Chicago, hired Boston board approved the investment in the meeting. private equity commitment was to Common Asset Management to run WPB Special Opportunities Fund At that same meeting, the board Fairview Capital Partners for up to Pensioenfonds Metaal en about $170 million in active interna- separate account at its Dec. 18 approved liquidating its $5 million $200 million for a separate account, Techniek and Pensioenfonds van tional developed markets equities, meeting, said John McCann, senior investment in Templeton Global Bond which will concentrate on investing in de Metalektro, both in The Hague, said Fernando I. Vinzons, director of consultant at AndCo Consulting, the Fund., an active global fixed-income the information technology, health Netherlands, selected AXA IM — Real investments. pension fund’s investment consultant. mutual fund managed by Franklin care, media, telecommunications and Assets and Macquarie Infrastructure The $11.2 billion pension fund The account is a separate tranche of Templeton. consumer businesses. Debt Investment Solutions to manage issued an RFP in August for an the EnTrust’s special opportunities The reason for the change in global The report said the other commit- a new €2.5 billion ($3 billion) Pensions & Investments February 8, 2021 | 35 HIRINGS

allocation to infrastructure debt, a because the firm was looking to made four new commitments totaling Texas County & District recently released meeting minutes spokeswoman for PMT confirmed. allocate the assets to a higher-convic- up to $810 million, said Shelli King, Retirement System, Austin, made show. The allocation is a new exposure tion strategy. spokeswoman for state Treasurer its first commitment of 2021 from its Also at the meeting, the board for both pension funds. AXA and SIIT World Equity ex-U.S. had $10 David H. Lillard Jr., who oversees the $1.1 real estate portfolio, a transac- voted to terminate Franklin Templeton Macquarie will each manage €1.25 billion in assets as of Jan. 31. SIIT pension fund. tion report showed. from its $2 million active global fixed billion — €1 billion on behalf of PMT Screened World Equity ex-U.S. had The $55.9 billion fund committed The $32.4 billion plan committed income portfolio and move the assets and €250 million for PME. $117 million. up to $250 million to open-end $45 million to Roxborough Fund III, an to an existing active domestic The portfolio will consist of Other subadvisers in the SIIT World core-plus real estate fund Cortland opportunistic fund managed by The core-plus fixed-income portfolio euro-denominated infrastructure Equity ex-U.S. Fund are JO Hambro Partners Growth and Income Fund; Roxborough Group, a new manager for managed by Loomis Sayles & Co., loans issued by companies in Capital Management, Wells Capital $200 million each to large-cap buyout TCDRS. giving that portfolio a total of $12 Western Europe to finance renewable Management, AllianceBernstein, fund Hellman & Friedman Capital million. energy and environmental projects as Acadian Asset Management and Partners X and private equity Trenton (Mich.) Fire and The reason for the termination was well as social, transportation and tele- McKinley Capital Management. Other secondary fund Whitehorse Liquidity Police Pension Fund hired Fidelity not provided. communications projects. subadvisers in the SIIT Screened Partners IV; and $160 million to Investments to run $20 million in As of Sept. 30, the actual PMT, which has €87 billion in World Equity ex-U.S. Fund include buyout fund Roark Capital Partners VI. passive domestic large-cap equities. allocations to domestic equities and assets, will initially invest €2 billion, Acadian, McKinley and Wells Capital. As of Sept. 30, the actual The $49 million pension fund’s domestic fixed income were 53.6% while PME, with €58 billion in assets, allocations to private equity and board voted at its Nov. 18 to hire and 20.5%, respectively. will initially invest €500 million. Tennessee Consolidated real estate were 8.1% and 7.2%, Fidelity to replace Vanguard Group as Investment consultant AndCo Retirement System, Nashville, respectively. its passive manager to save on costs, Consulting assisted. San Jose (Calif.) Police & Fire Department Retirement Plan committed $19 million to Clarion Lion Industrial Trust. The $4.1 billion pension fund closed the commitment to the open-end core real estate fund managed by Clarion Partners on Jan. 4, according to materials for its board’s upcoming Feb. 4 meeting. The pension fund is currently invested in the manager’s Clarion Lion Properties Fund. The portfolio had $80 million in assets in the plan as of Sept. 30. ESG Investing Virtual Series As of Sept. 30, the actual allocation to core real estate was 4.7%. May 17-20 Santa Barbara County (Calif.) Employees’ Retirement System rehired Hamilton Lane as discretion- ESG has been one of the most headline grabbing subjects of the last ary private equity consultant, Assistant CEO Lauren E. Thompson year in the investment management industry and beyond. However, the said in an email. challenges that these strategies look to address run far deeper than the The $3.6 billion pension fund past year. What sort of fundamental changes does the business world issued an RFP in July because it had not put the services up for bid since need to take on board to ensure that ESG issues are properly addressed 2007, Ms. Thompson said at the in the long run? time. As of Dec. 31, the actual allocation We are excited to announce of the as to private equity was 10.3%; the Judy Samuelson Aspen Institute target is 10%. our Keynote at this spring’s ESG Investing Virtual Series. Her new book, The Six New Rules of Business: Creating Real Value in a Changing World SEI hired Delaware Investments Fund Advisers as subadviser of its SEI has been making an impact on how society can start to orient itself Institutional Trust International Equity better to address the challenges we face. Judy will be discussing her Fund, SEI disclosed in a Jan. 22 SEC book and taking questions. filing. The filing also noted the removal of NWQ Investment Management as a The first 100 asset owners will receive a FREE copy of her book as part subadviser to the fund. of their registration. Register today at www.pionline.com/ESG2021. The reason for the changes was not provided. As of June 30, the SIT International Equity Fund had $3.8 billion in assets. Spokesman Robert Tacey said in Judy Samuelson August that SEI has been undertaking an ongoing effort to consolidate Author, The Six New Rules of Business: assets among managers in which SEI Creating Real Value in a Changing World, has the “highest conviction in each Founder and Executive Director ‘alpha source’ category.” At the time, SEI had removed Blackcrane Capital Aspen Institute Business and Society Program as a subadviser with no immediate replacement. Other subadvisers in the fund as of Jan. 22 were Acadian Asset Manage- ment, Causeway Capital Management, INTECH Investment Management, JO Hambro Capital Management, Lazard COMPLIMENTARY REGISTRATION AT PIONLINE.COM/ESG2021* Asset Management, and WCM Investment Management. SPONSORS: SEI also hired Lazard Asset Management as subadviser of its SIIT World Equity Ex-U.S. Fund and SIIT Screened World Equity Ex-U.S. Fund, and hired Delaware Investments Fund Advisers as subadviser to the World Equity Ex-U.S. Fund, the company Questions? For more details please contact Elayne Glick at (212) 210-0247 or [email protected]. disclosed Feb. 2 in an SEC filing. *Only asset owners and a limited number of consultants are invited to attend. All registration requests are subject to verification. The filing also noted the removal of P&I reserves the right to refuse any registrations not meeting our qualifications. The agenda for the ESG Investing is not created, written or produced by the editors of Pensions & Investments and does not represent the views or opinions of the publication or its parent company, Crain Communications Inc. Baillie Gifford as subadviser to the two funds. An SEI spokeswoman confirmed that the change was made 36 | February 8, 2021 Pensions & Investments

CAREERS RFP

Chief Executive Officer The California State Teachers’ Retirement System (CalSTRS) Private Equity Board Consultant (CEO) The California State Teachers’ Retirement System (CalSTRS) released a Request for Pro- posal (RFP) entitled RFP 5000001920, Private Equity Board Consultant. Proposals will be The California State Teachers’ Retirement System (CalSTRS) is seeking to appoint a new accepted until March 2, 2021. Chief Executive Officer (CEO) to succeed the current CEO, who has announced his upcoming retirement. The CEO is the executive and administrative head of the System, and CalSTRS is soliciting proposals from qualified firm(s) to provide expertise and advice re- oversees average annual contribution inflows of nearly $11 billion and average annual lated to the overall investment strategy, policies and practices of the Private Equity (PE) Advertise your RFP in expense outflows for benefit payments of approximately $16 billion. Based in Sacramento, Program. The firm selected will be a fiduciary to CalSTRS. CA, the CEO manages an annual operating budget of approximately $365 million and Pensions & Investments, provides leadership and direction to approximately 1,240 CalSTRS staff. For additional information, visit https://www.calstrs. com/request-proposal to download the complete RFP. and reach the top CalSTRS provides retirement, disability and survivor benefits to California’s more than investment managers and 964,000 public school educators and their families. Today, CalSTRS is the largest edu- cator-only pension fund in the world and the second largest pension fund in the United service providers in the States, with assets of $275 billion. money management The California State Teachers’ Retirement System (CalSTRS) For more information and to apply for this position: Managed Account Platform Service Provider industry. https://www.egonzehnder.com/chief-executive-officer-search-california-state-teachers-retirement-system. The final filing date for this position is March 1st, 2021. The California State Teachers’ Retirement System (CalSTRS) released a Request for Pro- posal (RFP) entitled RFP 5000001910, Managed Account Platform Service Provider. Pro- P&I RFPs posals will be accepted until March 16, 2021. Print CalSTRS is soliciting proposals from qualified firm(s) to provide managed account plat- Online Executive Director form services for alternative investments such as hedge funds. Services shall include on Email Ohio Police and Fire Pension Fund boarding managers, monitoring manager and counterparty risks, monitoring compliance Columbus, OH to guidelines and providing risk, performance and expense reports. The firm selected will be a fiduciary to CalSTRS. Place your ad today. The Ohio Police and Fire Pension Fund (“OP&F”) is searching for a dynamic leader with excellent communication skills to be its next Executive Director. With a staff of For additional information, visit www.calstrs.com to Contact Erin Smith 145, the Executive Director is responsible for the oversight of a $17 billion pension download the complete RFP. system providing a defined benefit retirement plan for over 55,000 of Ohio’s active and at (212) 210-0719 retired police and fire personnel and their dependents and beneficiaries. This position interacts directly and indirectly with multiple constituents, including the Board of Actuarial Consultant Search for details. Trustees, staff, members, the legislature, media, and other interested parties. Public Notice Request for Proposal (RFP) for Recordkeeping & Custodial The Water and Power Employees’ Re- The Executive Director leads OP&F towards its mission, vision, short-and long-term Services for Deferred tirement Plan invites qualified actuarial www.pionline.com/RFPs strategic goals, initiatives, and operational effectiveness. This position reports to a consulting firms to apply for the ser- Compensation Plans vices described in the Actuarial Con- 9-member Board of Trustees and is the top leadership position within OP&F, with nine Fulton County School District (FCS) direct reports. sultant Request for Proposal (RFP) at http://retirement.ladwp.com. FCS is seeking proposals from quali- OP&F’s mission is “securing the future for Ohio’s police and firefighters,” and every fied firms to provide recordkeeping and position contributes toward that mission. For additional insight, please watch the brief custodial services for its deferred com- Working at OP&F video, located on the Career Opportunities page at www.op-f.org. pensation plans. The RFP is expected New York State Insurance Fund to be issued the week of Feb. 8, 2021. Securitized Credit Manager Search APPLY: To find out more about the responsibilities, pay range, and minimum quali- Cortex Applied Research (Cortex) will NYSIF #2021-01-INV fications for this exciting opportunity, and to apply, please visit the OP&F Career Op- be assisting with the search. Please portunities page. Resumes of qualified candidates received by March 4, 2021 email Cortex to request the RFP ma- NYSIF is seeking proposals from quali- will be given preference. terials. fied firms capable of providing a Secu- ritized Credit Manager for the purpose For more information, contact: The expected deadline for submitting of providing NYSIF with a portfolio of Keisha D. Proctor, SPHR, SHRM-SCP, CEBS, CM proposals is March 8, 2021, but may securitized credit investments. Further HR Director change at FCS’ discretion. For ques- information can be found at NYSIF’s Ohio Police and Fire Pension Fund tions, please contact Cortex at jtam@ procurement website: www.nysif.com/ [email protected] - 614-628-8367 cortexconsulting.com or 416-967-0252 procurement. Responses from respon- ext. 233. sible bidders are due by 3/8/2021.

The Ohio Police and Fire Pension Fund is an equal opportunity employer. Reach a targeted audience of executive investment professionals. RFP

Emerging Market Equity and New York State Insurance Fund Your company’s best investment strategy. International Small Capitalization Private Placements Asset Manager Advisory Services Search New Jersey Division of Investment NYSIF #2021-02-INV Find the quality talent you seek for The New Jersey Division of Investment NYSIF is seeking proposals from quali- has issued a Request for Proposals fied firms capable of providing a Private your team at P & I Careers - the premier destination for Emerging Market Equity and Inter- Placements Asset Manager for the pur- national Small Capitalization Advisory pose of providing NYSIF with a portfolio for the industry’s most influential investors. Services for the State of New Jersey. of private placement corporate bonds. The New Jersey Division of Investment Further information can be found at NY- encourages MWBE firms to bid. For SIF’s procurement website: www.nysif. a copy of this RFP, its relevant docu- com/procurement. Responses from re- Place your ad today. ments, and the State’s required forms sponsible bidders are due by 3/1/2021. visit the Division’s website at https:// www.state.nj.us/treasury/doinvest/rfp. Contact Erin Smith at (212) 210-0719 or [email protected] shtml.

P036_PI_20210208.indd 28 2/4/21 4:31 PM Pensions & Investments February 8, 2021 | 37

EEO-1 reports, commitments to now have data that backs that up,” of diversity,’’ she said. “Some of the spread to Illinois, Washington, Col- board diversity, racial equity audits he said. Calvert’s own industry ana- largest investors are also public orado, Maryland, New York, Hawaii, Boards and other measures to address ra- lysts model all ESG issues, includ- funds, and they are also under scru- Massachusetts, Michigan, Ohio, cial and gender pay inequity. He ing diversity, that might affect a tiny. They are being asked a lot of New Jersey and Pennsylvania. CONTINUED FROM PAGE 1 also has asked fund asset managers company’s long-term value. questions and they are passing those Mark Rogers, president, CEO trying to move the needle,” Ms. Mas- to disclose their own policies for Investors like Mr. Stringer of questions on to their companies.” and founder of BoardProspects, a tagni said. A key priority for this promoting diversity and inclusion. New York City often cite research Board diversity does act as a Boston firm advising boards on re- year, she said, is getting companies In the coming weeks, Mr. DiNap- by McKinsey & Co. connecting gen- proxy for other aspects of diversity cruitment and governance issues, to disclose the gender, racial and oli will announce specific voting der and ethnic or cultural diversity and “everyone is really interested in expects the pace of racial and eth- ethnic composition of their boards, positions against boards lacking ra- on executive teams to stronger fi- getting a handle on this issue,” said nic diversification of corporate and to see where they can improve. cial or ethnic diversity, spokesman nancial performance. Courteney Keatinge, senior director boards to accelerate, as boards lis- “We are asking them to think Matthew Sweeney said. McKinsey’s most recent analysis of ESG research for proxy advisory ten to investors and others. “I guar- about it. It is really about widening Calvert Research and Manage- in 2019 found that companies in the firm Glass Lewis & Co. in New York. antee you that every single public that pool,” she said. top quartile for gender diver- Glass Lewis plans to backtest S&P board is looking at this. They need sity on executive teams were 500 companies on how well they to diversify before they are told to Record engagement 25% more likely to have did in 2021 in four areas: racial dis- do it,” Mr. Rogers said. Martin Whittaker, CEO of above-average profitability closure, having a board skills ma- State officials are also taking a JUST Capital, a non-profit than companies in the bot- trix, whether proxy statements re- page from other institutional inves- that tracks company perfor- tom quartile — up from 21% quire that diversity is clearly tors by joining coalitions like the mance on multiple stake- in 2017 and 15% in 2014. defined and if they have adopted Russell 3000 Board Diversity Dis- holder issues, expects to see The connection between the Rooney Rule for director and closure Initiative. Its 21 investor or- record engagement on board diverse boards and corporate executive searches. Borrowed from ganizations with a collective $3 tril- diversity by institutional in- performance prompted Nas- the NFL, the corporate version of lion in assets called on the vestors, as companies “are in- daq in December to seek ap- the Rooney Rule requires that the companies in the index to volun- creasingly competing in a proval from the Securities initial pool of candidates include tarily disclose gender, racial and marketplace that values lead- and Exchange Commission to women and minorities. ethnic board diversity data, given ership on social issues.” require listed companies to the correlation with long-term per- He is encouraged by re- publicly disclose the diversity ‘Job No. 1’ formance. cent pledges from major in- of their boards and eventual- Improving board diversity “really The initiative is part of a broader vestors like BlackRock Inc. ly to have at least two diverse is job No. 1 now at many nominat- alliance promoting more diverse and New York City Comp- directors. ing committees,” said Patrick Mc- boards, including the Midwest In- troller Scott Stringer, fiducia- Former SEC Commission- Gurn, special counsel for proxy vestors’ Diversity Initiative, the ry for the $239.8 billion New er Roel Campos, chairman of firm Institutional Shareholder Ser- Northeast Investors’ Diversity Ini- York City Retirement Sys- the Latino Corporate Direc- vices Inc., who sees it moving over tiative, and The Thirty Percent Co- tems, to push companies to tors Association, thinks the to executive positions as well. “A lot alition. improve ethnic and gender Nasdaq approach “goes a of the activism we are seeing this Russell 3000 initiative co-Chair- diversity on their boards and ON THE HORIZON: Kathryn McDonald believes more long way” to addressing in- proxy season is calling for diversifi- man Shawn Wooden, the Connecti- in their workforces and to data on racial and ethnic diversity will be coming soon. vestors’ push for more di- cation,” he said. cut treasurer and principal fiduciary publicly share annual Equal verse corporate environ- ISS data indicates that as of Jan- of the $37 billion Connecticut Re- Employment Opportunity Commis- ment has spent the past three de- ments. “Investors want better uary 2021, approximately 88% of tirement Plans & Trust Funds, Hart- sion reports known as EEO-1 re- cades filing “hundreds” of share- returns. It also shows whether a S&P 500 and 54% of Russell 3000 ford, said that investors continue to ports. holder proposals to get better company is forward-thinking,” Mr. companies have at least one racial- push for increased corporate board Mr. Stringer and other investors, insight into racial and gender data Campos said. ly and/or ethnically diverse board diversity because of “the mounting such as State Street Global Advi- of boards and workforces, said John Many investors also expect that director. Companies with no racial body of evidence” connecting it to sors, made it clear to companies Wilson, a vice president and direc- the current SEC will eventually or ethnic diversity on boards a year long-term shareholder value. that failing to disclose racial and tor of corporate engagement in consider mandating diversity dis- from now could face an ISS recom- “With a president in the White ethnic diversity will trigger votes New York, who sees investors and closure. mended vote against relevant com- House whose economic agenda in- against their board’s governance corporate leaders increasingly rec- Kathryn McDonald, a founding mittee chairs. cludes racial equity and who under- officials this year, and in 2022 if ognizing the value of diversity as a partner of Radiant ESG, a consulting States are also jumping in, with a stands how diverse leadership en- they fail to make progress. driver of financial performance firm based in Oakland, Calif., ex- dozen adopting laws or considering hances our overall economic New York state Comptroller over the long term. pects data on racial and ethnic di- legislation tied to gender or racial/ performance, I am encouraged that Thomas P. DiNapoli, the sole trust- “We are pleased to see that we versity to improve as major provid- ethnic diversity on corporate more companies will continue to ee of the $226.4 billion New York are now in a moment and we don’t ers of ESG data get involved, driven boards. The trend started by Cali- utilize the tools at their disposal to State Common Retirement Fund, have to make that case. There was a in part by regulators in Europe. fornia, with quotas for representa- create more inclusive, effective Albany, has filed several sharehold- recognition that boards and compa- “Most large investors have been tion by women and underrepre- boards that produce better invest- er proposals asking companies for nies were missing out on talent. We convinced of the economic benefits sented communities, has since ment returns,” Mr. Wooden said. n

clusion program. ees Retirement System and the Another early adopter, the $53.5 $15.2 billion School Employees Re- Diverse billion Teachers’ Retirement Sys- tirement System of Ohio. tem of Illinois, Springfield, has seen CONTINUED FROM PAGE 3 four iterations of an emerging man- Corporate progress lags with area colleges and even middle agers program that started in 2005. In the corporate world, progress schools to promote the career path The $79.5 billion Massachusetts on hiring diverse managers is not and to fill its own programs for in- Pension Reserves Investment Man- coming as fast as it is with public terns and associates. It also has agement Board, Boston, has had an pension funds or endowments, said started collaborating with promi- emerging manager policy since Nimisha Srivastava, global head of nent firms like its Baltimore neigh- 2011, with a goal of investing 5% to credit at Willis Towers Watson PLC bor T. Rowe Price Group Inc. to im- 10% of new and current investments in Charlotte, N.C., and a member of prove the numbers. with emerging and diverse-owned its inclusion and diversity task “It’s becoming more of a priority,” managers. It defines those as firms force. Still, she said, “every other he said. where women and/or minorities week we get a call with a client who Instead of what he calls the “rifle own more than 25% of the company. wants to understand it.” shot” approach of a diverse manag- And things changed dramatically “In our minds, the first starting er program, he expects more diver- in January, when Massachusetts point is, diverse teams lead to better sity throughout organizations over- Gov. Charlie Baker signed a new outcomes. People have gravitated to all. “I think you will see a lot of law requiring MassPRIM to in- that idea,” Ms. Srivastava said. She changes,” Mr. Palmer said. crease to at least 20% the diversity IMPORTANT: Maryland’s Andrew Palmer said diversity is becoming ‘more of a priority.’ agrees that expanding the pipeline Maryland was one of 11 sponsors of both investment managers and of diverse managers is important, to report how much they invest with consultants the state trust fund portfolio, the goal is “to enhance Northeast Investors’ Diversity Ini- rather than just pressure from asset diverse managers and the number hires. It will also have to revisit its economic equity in the business tiative is made up of the state trea- owners to have specific programs. of those managers, questions new to investment policy to see if it pres- community for generations to surers of Rhode Island, Connecti- “It’s not necessarily adding a pro- this year’s Pensions & Investments ents barriers to minority invest- come,” said Massachusetts Treasur- cut, Maine, Vermont, Massachusetts gram; it’s saying how can we get survey of the top 1,000 pension ment managers such as years in er Deborah B. Goldberg, who serves and New York. The Midwest Inves- managers to add more?” funds. Maryland ranked second on operation, track records or mini- as MassPRIM’s chairwoman. tors Diversity Initiative, a coalition That type of engagement seems that list, investing $12.1 billion with mum assets under management, Michael Trotsky, MassPRIM ex- of institutional investors with a col- to be working, she said; even clients 57 managers. Maryland is one of 27 and must start reporting its prog- ecutive director and CIO, is a found- lective $820 billion in assets under with diverse programs are chang- plan sponsors indicating their plan ress to the state Legislature. ing member of a CFA Institute com- management and advisement, uses ing their minds about taking a has a diverse hiring policy. It is the next step “of a much lon- mittee helping to develop a global corporate engagements and share- broader approach, including out- ger journey,” said spokeswoman diversity and inclusion code of con- holder rights to protect shareholder reach as well as hiring. While larger Exelon Corp. Elizabeth Herlihy. “We are continu- duct aimed at more inclusion and value and maximize returns. Its asset owners have more scrutiny Exelon Corp., Chicago, which really assessing how we can improve better investment outcomes. public members include the $24.6 from stakeholders and may want to ported investing $1.7 billion with 26 existing programs to influence last- MassPRIM is also part of a grow- billion Illinois State Board of In- demonstrate action by recruiting diverse managers, in 2020 added its ing, positive change.” ing number of institutional inves- vestment, the $85.7 billion Minne- and hiring managers, “hopefully own investment and legal divisions Beyond increasing manager di- tors joining coalitions to increase sota State Board of Investment, the they can do both,” she said. “We are to a long-standing diversity and in- versity within the pension fund diversity on corporate boards. The $104.3 billion Ohio Public Employ- at sort of at an inflection point.” n 38 | February 8, 2021 Pensions & Investments

The GameStop episode led to a ladder to invest in or short larger- UPCOMING WEBINARS | REGISTER TODAY number of changes for hedge fund company stocks. GameStop positions. Mr. Gayeski is also positive on the SkyBridge Capital II LLC, New outlook. He said given the level of CONTINUED FROM PAGE 1 York, found that some of the under- volatility in equity markets and high price up and in turn hurting hedge lying hedge fund managers in its dispersion among individual stocks, funds holding short positions. funds-of-funds strategies suffered “we think 2021 looks like it will offer The share price jumped 134.8% losses in their short portfolios dur- the best opportunity set we’ve seen on Jan. 27, to $347.51 from $147.98 ing the retail investors’ attack in the since the late 1990s for strategies the day before, and was up 788.3% last week of January, but “no one like convertible arbitrage.” Sky- vs. a week before. was freaking out,” Troy A. Gayeski, Bridge manages $7 billion. Lessons From 2020: OCIO Model U.S. equity market trading hit a partner and co-chief investment of- record 24.5 billion shares on Jan. 27, ficer, stressed in an interview. Changes ahead? Passes Major Test of Governance according to data from Cboe Global Mr. Gayeski said toward the end Looking ahead, other sources Markets — a record high. The no- of 2020, hedge fund managers had also expect some of these changes, Live, Wednesday, February 10 • 2:00 p.m. - 3:00 p.m. ET tional value traded was $891.3 bil- taken their risk levels as high as as well as other tweaks to invest- lion, the third-highest day ever, be- SkyBridge’s investment team had ment approaches to become per- In 2020, the pandemic challenged the burgeoning OCIO market, which hind Feb. 28, at $989.3 billion, and seen for some time in response to manent. passed major tests of governance and communications. As a result, Dec. 18, at $952.8 billion. the results of the U.S. presidential “We expect that alternative in- institutional investors have many lessons to learn and our panel of There has been a “massive dele- election, continued fiscal stimulus vestment managers have begun industry experts, who have managed OCIO relationships through many veraging that has occurred across and the coming availability of CO- and/or will look to make changes,” business cycles, is eager to share their insight. Join us for this webcast, the long/short spectrum” as a result VID-19 vaccines. Cian Desmond, vice president at which will cover key governance issues, the importance of deep, trusted of this episode — some voluntary After the short-squeeze episode, Wilshire Advisors LLC in Santa relationships and the critical role of process and procedure. Among the and some in response to pressures topics our panel will discuss: from external forces such as profit • State of the OCIO market and loss and prime brokers, James • Governance framework for an OCIO relationship Neumann, New York-based partner • Fiduciary guidelines and CIO of hedge fund advisory • Executing an OCIO plan firm Sussex Partners U.K. Ltd., said in an email. “It has maybe gotten a Victor J. Blue/Bloomberg bit manic, but the concern is that Register Now: pionline.com/OCIOWebinar the squeezes can be directed at any sector or market cap. Further concern is that this will go more global,” Sponsored by: Mr. Neumann added. The episode has brought the future of short alpha into the spot- light, sources said. “The real question is whether this is a one-off ... or something The Institutionalization of Retail Part 3: more structural, which can impact short alpha,” Victoria Vodolazschi, Building a Successful Distribution Eort New York-based director, investments and hedge fund research at Live, Thursday, February 11 • 1:00 p.m. - 2:00 p.m. ET Willis Towers Watson PLC, said in Building on the foundation built in Parts 1 and 2 of our series, Part 3 will an email. “Hedge funds make mon- GOING UP: Troy A. Gayeski said hedge funds hiked risk levels at the end of 2020. take the concepts of the changing landscape of asset management and ey through the process of price dis- the growing inﬂuence of the wealth management business and turn covery and this ability to organize a the hedge funds managers Sky- Monica, Calif., said. Potential future them into actionable insight by focusing on team structure, talent and ‘flash mob’ potentially means that Bridge invests with significantly de- changes include short positions strategy. Our speakers will discuss how the evolution of the business price discovery can suddenly be- leveraged their portfolios by reduc- having smaller size limits or preset has impacted their strategy and planning as well as how they eected come irrelevant given unprece- ing risk by 10% to 30%, covering their stop-loss parameters, “using tech- change within their organizations. From these examples, we will oer dented potential volatility of assets.” short positions, cutting back their nology to scrape social media plat- concrete steps and ideas to successfully meet the challenges of today’s That’s tough for managers with long positions and building up their forms for indications of growing risk business environment. short-alpha ambitions, since short cash reserves, Mr. Gayeski said. potential” and avoiding crowded alpha “is hard to come by in any However, “it looks like the worst stocks where the incremental buyer Speciﬁc topics our panel will discuss include: event,” Patrick Ghali, Zurich-based is over. When you step back and or seller is less apparent. • The convergence of consultant relations managing partner and co-founder look at the situation, it was a short- “In addition, we expect allocators • Getting internal buy-in for structural change at Sussex Partners, said in an email. term market move with a fast re- to prioritize long/short strategies • Structuring a new team The same holds true of market- covery.” that participate in less crowded or • The key role of technology neutral managers “where moves SkyBridge’s Mr. Gayeski agreed less efficient areas of the equity away from fundamentals can really that long/short equity managers market with an emphasis on spe- Register Now: pionline.com/PartThree-Institutional- create problems,” he added. are diversifying their short portfo- cialized sectors, catalyst-driven in- izationofRetailWebinar lios by making smaller investments vestments, or strategies with great- Rethinking strategies in more opportunities than they er breadth on the short side of the

Brought to you by: in partnership with The episode is “forcing (hedge usually would. ledger,” with a high number of short fund managers) to rethink their Mr. Gayeski said long/short eq- positions that are individually strategies and tactics,” Richard uity and multiteam platform hedge smaller in size, Mr. Desmond said. Smith, CEO of The Foundation for fund firms will also be making Mr. Neumann thinks this may Getting Back to Normal: How to the Study of Cycles in Tampa, Fla, changes going forward. have a lasting “impact on the large said. “It will lead to some strategic “You don’t want to be too far over equity long/short sector, particular- Creatively Manage Fixed Income and tactical pivots … Tactically they your skis when it comes to your ly affecting those managers” with will have to cede some ground in short book,” Mr. Gayeski said, add- portfolios containing both the long Portfolios in a Rising Rate Environment the short term while these Reddit ing that hedge fund managers cur- and short top holdings. Pensions & Investments presents a webinar featuring T. Rowe Price’s insurgents enjoy their moment in rently are avoiding crowded short “The more leverage a manager Arif Husain, Head of International Fixed Income and Portfolio Manager the sun,” he said. bets and moving up the market-cap employed, the bigger the problem,” of the Dynamic Global Bond strategies, and Mark Vaselkiv, Chief Invest- ment O cer for Fixed Income. These veteran bond investors share their insights on how to manage portfolios in a rising rate environment. ing sophistication of these funds.” ronment for bonds,” said Diego Among topics they discussed: Lopez, New York-based managing Direct Not new for some director at Global SWF, a firm that Embarking on private credit tracks sovereign wealth funds and • Hedging strategies other than long Treasuries to provide the tradi- CONTINUED FROM PAGE 2 tional ballast to an equity bear market partnerships with money managers public pension funds. peer-type structures rather than is no new thing for some of large The European focus for the • Finding sources of high quality duration outside the U.S. GP/LP where the power balance is Canadian pension funds, for exam- Mubadala/Barings and QIA/CSAM • The increased importance of liquidity, ﬂexibility and nimbleness in slightly different,” Ms. Barbary said. ple. In 2016, Public Sector Pension partnerships shows “a desire to 2021 Sovereign wealth funds were Investment Board, Montreal, made continue to have some form of ex- “not particularly active in direct a €500 million ($609 million) seed posure to Europe because of the Replay available: pionline.com/TRowePriceWebinar lending previously,” said Enrico investment in Albacore Capital underlying fundamentals,” the IF- Soddu, head of data and analytics in Group’s European credit platform. SWF’s Ms. Barbary said. Sponsored by: London at the IFSWF. Ms. Barbary The attraction of direct lending Since European equity markets added that because of this, creating and private debt for sovereign have held up well and are still quite a partnership “is to a degree a safer wealth funds is much the same as expensive, gaining exposure to the way of introducing themselves to a that for other types of institutional region via private debt and private different asset class rather than investors: “Diversification andequity may be a more attractive what we saw a decade ago. This higher yields, in the context of vola- route, she said. For a full list of webinars, go to pionline.com/webinars change in structures is interesting tile public equities, overpriced pri- And, of course, there is also a in that it’s indicative of an increas- vate equities and a difficult envi- COVID-19 story involving the part- Pensions & Investments February 8, 2021 | 39

so large, highly levered short-term trades will be more closely scruti- nized, depending “on how banged Short squeezes expected to face regulatory scrutiny up they got,” he said. “The manag- A U.S. legislator and some members of the to trading platform Robinhood Markets, which Markets, however, will act much faster: ers will be more aware on the short hedge fund community are calling for regulatory on Jan. 28 put temporary buying restrictions on “Hedge funds won’t put themselves in the same side on what positions may be can- scrutiny and intervention regarding last week’s a number of stocks including GameStop, vulnerable position, so as shorts are unwound, didates for a short squeeze. This sits pummeling of short sellers by retail investors. BlackBerry Ltd. and Nokia Oyj due to “ongoing the air will be let out of the balloon,” Mr. Beer next to the concern about using le- Sen. Elizabeth Warren, D-Mass., a member of market volatility.” said. verage. AIMA will provide its resources to help in any The “speed and magnitude” of the GameStop One risk is that “Reddit-reading the Senate Committee on Banking, Housing and traders” begin to target all stocks Urban Affairs, sent a letter to Allison Herren inquiry “and will continue to provide factual move was driven by “cheap options trading with with large short positions in them, Lee, acting Securities and Exchange Commis- evidence that short selling is important and enormous inherent leverage, which in turn has David Morrison, London-based sion chairwoman, requesting that Congress and healthy in maintaining fair and efficient fueled stock purchases by banks who need to market analyst at trading firm the public are given information on how the SEC markets,” Mr. Inglis said. adjust hedge books,” Mr. Beer said. Therefore, TradeNation, warned in an email. “intends to address these concerns and prevent James Neumann, a New one option for regulators could “These will tend to be smaller com- these and future incidents of potential market York-based partner and CIO of be to deleverage the system by panies where a concerted surge in manipulation.” hedge fund advisory firm putting limits on options trades, buying can move the price substan- Ms. Warren said the “wild fluctuations” in Sussex Partners U.K. Ltd., said Mr. Beer added. tially. But everyone is wise to that GameStop Corp. and other U.S. companies’ he expects U.S. regulators to U.S. officials have moved to now, and if short sellers get hurt, so get involved. “It does seem like investigate the effect of the be it,” he said. stock prices “are just the latest indication that But in terms of a silver lining, many private equity firms, hedge funds, and other coordinated buys/sells of episode on markets. A meeting one consultant, who asked not to be investors, big and small, are treating the stock single stocks will meet some of financial regulators with named, said the recent short- market like a casino, giving little consideration to regulatory scrutiny and is easy Treasury Secretary Janet Yellen squeeze mass retail actions “will the companies, communities, workers, and to trace,” he said in an email. on Feb. 4 determined that the have a cleansing effect regarding consumers that may be affected by these risky And in a separate email, infrastructure of stock and long/short portfolios and the result bets." Patrick Ghali, Zurich-based man- commodity markets was likely will be very good investment She said the episode “reveals a clear aging partner and co-founder at "resilient" over the recent opportunities going forward.” distortion in securities markets, with benefits Sussex Partners, said “where period of volatility in trading, accruing to investors that do not clearly benefit there is clear market abuse or according to a Bloomberg Keeping quiet WORRISOME: Jack Inglis said the company's workers, consumers, or the manipulation this needs to be report. Officials, including from Another aspect of hedge fund he’s disturbed by lawmakers that managers’ behaviors may be to fur- broader economy." looked at, however it is displayed a ‘knee-jerk reaction the Federal Reserve, the ther limit the amount of informa- Jack Inglis, London-based CEO of the important that the rules — against short selling.’ Securities and Exchange tion they make public, in efforts to Alternative Investment Management Associa- whatever they may be — are Commission and the Commod- keep short and other positions out tion, in a Feb. 1 note to members highlighted applied fairly, equally and consistently to all ity Futures Trading Commission, agreed that the of retail investors’ hands. Ms. Warren’s letter to the SEC: “I welcome a full investors regardless of their size. Market SEC should complete a study of the events of “One thing is certain. Hedge fund investigation by the SEC, Congressional participants should be confident that markets the period. managers won’t be using their committees, and any other bodies into the work as advertised,” he said. The SEC is looking into the episode for signs megaphones anymore to broadcast events in markets this past week.” Even if authorities were to get involved, it’s of fraud and House and Senate committees are their favorite long/short investment He said he is sure that WallStreetBets — the not clear what the response should be. planning hearings, the Bloomberg report noted. ideas on ... TV, the internet, in writ- forum on Reddit where the short-selling “If three hedge funds collude to drive up a The SEC in a Jan. 29 statement said it is ten public statements or at conferences. I think we’re going to see in- squeeze originated — “will be called upon to stock, that might be an addressable regulatory “closely monitoring and evaluating the extreme formation coming from hedge provide evidence in the investigations, but the issue around market manipulation,” Andrew Beer, price volatility of certain stocks’ trading prices funds going underground,” the con- role of some supposedly responsible lawmak- New York-based managing member at Dynamic over the past several days. Our core market sultant said. ers, who have been cheering these events from Beta Investments, which specializes in hedge fund infrastructure has proven resilient under the Acknowledging the irony that the sidelines, with a knee-jerk reaction against replication, said. But if “10,000 individual weight of this week’s extraordinary trading even as institutional investors al- short selling, is concerning to say the least. investors are on the same side of a trading frenzy, volumes. Nevertheless, extreme stock price most unanimously support the Moreover, it is the Dodd–Frank regulations, it’s not obvious that the SEC should do anything. I volatility has the potential to expose investors transparency into hedge fund man- instituted by lawmakers after the last financial suspect it will be investigated vigorously and, if to rapid and severe losses and undermine agers’ portfolio holdings afforded crisis, that led to Robinhood halting trading in clear instances of illegal conduct are identified, market confidence.” by the U.S. Securities and Exchange these stocks,” Mr. Inglis said. He was referring individuals will be punished.” — SOPHIE BAKER & JAMES COMTOIS Commission’s quarterly 13-F portfolio filings, the consultant said these filings likely are a source of hedge fund manager investments Short Selling Regulation’s mini- AIMA and vast troves of indepen- managers have for some time ity of intelligence is one of the fac- for retail investors seeking targets. mum reporting threshold for shares dent research have shown time and looked to alternative data for sig- tors that has contributed to the “These raids by retail investors traded on a U.K. trading venue was again that it is useful in the efficient nals. Aspect Capital Ltd. has been GameStop situation. have made the small-cap market a reduced to 0.1% of issued share functioning in markets,” while ma- “focusing hard the last five years” Andrew Beer, managing member dangerous minefield for hedge capital, effective Feb. 1. Prior to that jor regulators have also acknowl- on non-traditional datasets that at Dynamic Beta Investments, a funds, especially those that broad- date the minimum threshold was edged this, adding that the practice drive markets, said Asif Noor, Lon- New York-based money manager cast their stock picks. This is a bad 0.2%. These notifications to the Fi- is “tightly regulated.” don-based portfolio manager. that specializes in hedge fund rep- outcome for hedge fund managers nancial Conduct Authority are pri- However, he said that by comply- Teams look at various blogs but do lication, said in an email that the because it makes the small-cap vate. ing with the rules to disclose mean- not look at social media feeds “as elements of an episode like this space less efficient and reduces al- However, when net short posi- ingful short positions, hedge funds we find them to be quite sporadic. “have been building for some time: pha opportunities. It’s likely that tions of shares reach 0.5% of issued are providing “the open informa- But (we use) blogs, press releases, access to information, dissemina- hedge funds will have to invest capital for a traded company, firms tion for others to trade against. The news sources — to see whether tion of knowledge around formerly more in large-cap stocks,” the con- must report publicly. Positions are question should be asked as to there is a buildup of sentiment.” esoteric trading strategies, nearly sultant said. available on the FCA’s website. whether this information has been He said the recent episode is “in- costless stock and options trading, However, this will only be possi- Jack Inglis, CEO at the Alterna- abused by others to create the huge teresting in terms of bringing out the (and) a mob mentality in social me- ble where regulation allows. Hedge tive Investment Management Asso- value distortions that we have just role that non-traditional datasets dia. The only lesson for investors funds, by law, are required to report ciation in London, wrote in a Feb. 1 seen in such stock prices. Surely, play in predicting financial markets.” here is to avoid clearly crowded certain short positions to authori- note to members that “finger wag- that is not a healthy marketplace?” But with information comes trades, whether in stocks or credit ties. In the U.K., for example, the ging at short selling is not new. Hedge fund and other money power, and this increased availabil- instruments,” he said. n nerships “because European deal activity until the first quarter of this year. Ringrow, London-based head of of- risks,” Daniel Brett, head of re- there are loads of com- was down 58% vs. the ficial institutions at Invesco Ltd. “So search and data at the firm in Lon- panies that, given lock- same period in 2019. Valuations widening a win-win for both the originators don, said in an October newsletter. down, are viable busi- However, in the first Managers expect direct lending and the capital providers.” There is a risk, however, that “an nesses in even vaguely quarter, Deloitte re- to continue to offer opportunities. Regarding the potential risks investor bandwagon could see capi- normal times, but just corded the highest “There are quite a few opportuni- and losses associated with direct tal deployed too early, leading to not right now. There’s first-quarter deal vol- ties as central banks have been lending, such as defaults, Mr. unattractive valuations as investors an opportunity to lend umes on record, with quite reluctant to get involved in Ringrow said he assumes that, as compete to snap up opportunities. to companies that are 12.2% more than in the direct lending,” said Anton Pil, these partnerships “are investing Nevertheless, state-owned inves- not distressed but have first quarter 2019. And global head of alternatives at J.P. across a wide spread of underlying tors are quick learners and have been hit by COVID,” Ms. the third quarter of last Morgan Asset Management in New clients, then perhaps viewing it as a sufficient weight and sophistication Barbary added. SHARING: Rod Ringrow year brought with it a York. “Probably a year ago, pre- total pool and recognizing the re- to dominate the market going for- The direct lending said partnerships are a relaxing of restrictions pandemic, I was getting worried turn on the total pool — rather than ward,” he said. market experienced a win-win for originators across Europe, result- about valuations in private credit, each individual underlying loan — But creating a direct lending part- slowdown in line with and capital providers. ing in a 30% increase in but those have widened back out.” would allow them to account for nership won’t be a blanket opportu- other markets as the deals vs. the previous And investing through a part- this issue.” nity for sovereign wealth funds. coronavirus pandemic bit in the three months. Looking ahead, De- nership means sovereign wealth Global SWF executives expect to “You’re only talking about six to 10 second quarter last year. Deloitte loitte said positive developments funds “get access to the distribution see more sovereign wealth and funds that have the ability to do this LLP’s Alternative Lender Deal for vaccines are unlikely to have an capabilities of their partners, which public pension funds “look for fur- out of a universe of 78. They are the Tracker found that second-quarter impact on the direct lending market they could not do alone,” said Rod ther opportunities in debt default bigger funds,” Ms. Barbary added. n 40 | February 8, 2021 Pensions & Investments AT DEADLINE over the five-year period ended No. 9 from No. 10 over the year, with Sept. 30. $128.9 billion in total assets as of Top 1000 Sept. 30, up 7.4%. Properties. As of Dec. 31, the The big three Washington bumped AT&T Inc., GPIF sees Q4 gain CONTINUED FROM PAGE 1 actual allocations to real estate Looking at the largest retirement Dallas, down one spot to 10th, with Japan’s Government Pension and private market debt were 9% rates, both sides of the portfolio did funds by total assets, the ranking of $127.4 billion, up 1.4%. Investment Fund reported and 6%, respectively. well,” he said of fixed-income and the three largest plans remained Within the top 200 funds’ defined investment gains of $100 billion risk assets. “Really, you saw across unchanged over the year ended benefit plans, assets in passive eq- for its fiscal third quarter ended the board some positive returns for Sept. 30. uity strategies were up 11% for the Dec. 31, buoyed by double-digit N.C. lowers rate most plans.” Federal Retirement Thrift In- year ended Sept. 30, at $1.05 trillion. equity returns at home and abroad. The $114.7 billion North Over the year ended Sept. 30, vestment Board, Washington, re- Additionally, within this universe, The ¥10.4 trillion ($100.7 Carolina Retirement Systems is P&I’s survey also found that de- mained the largest retirement fund assets in passive U.S. equity strate- billion) windfall for the three-month lowering the assumed rate of fined contribution assets within the with $651.1 billion, all in defined gies grew by 5.8% to $657.9 billion largest 1,000 funds continued to contribution assets, up 8.3% from over the year, while assets in active period, which included ¥836 billion return to 6.5% from 7% for the grow at a faster pace than defined Sept. 30, 2019. U.S. equity strategies dropped 5.3% principal pension fund. in interest and dividend income, benefit assets within these funds. California Public Employees’ Re- during the period to $307.9 billion. lifted the value of the pension Lowering the assumption “will DC assets in P&I’s universe of the tirement System, Sacramento, was Jase Auby, chief investment offi- giant’s portfolio by roughly 6.3% to provide the best opportunity to top 1,000 funds grew 9.2% to $4.67 cer for the Teacher Retirement Sys- a record ¥177.7 trillion. meet the state’s long-term trillion, while defined benefit plan tem of Texas, Austin, said in an Though the coronavirus obligations as well as maintain its assets grew 5% over the year to email that the pension fund “mod- pandemic resumed its spread AAA bond rating,” Treasurer Dale $7.42 trillion as of Sept. 30. erately increased our passive allo- globally during the quarter, Folwell said Feb. 2 in a statement. P&I’s survey also found that cation, primarily in the U.S.” over expectations for the distribution of The change will be recognized large public plans continued to the year reviewed in the survey. manage the lion’s share of defined “This reflects the ongoing strong a vaccine and continued fiscal and immediately for financial reporting benefit assets in the top 200 funds. performance in passive as invest- monetary stimulus globally were and calculating the funded status As of Sept 30, public plans man- ment flows continue to enter those able to ignite stock market gains but will be phased in over five aged 68.6%, or $4.03 trillion, of the funds and our ongoing evaluation at home and overseas, Masataka years for calculating employer $5.88 trillion in DB assets across the of the opportunity set among active Miyazono, GPIF’s president, said in contribution rates for the fund. top 200 funds. In comparison, 10 managers,” he added. a Feb. 5 statement. During Mr. Folwell’s tenure, the years earlier, this breakout was Texas Teachers, which had GPIF’s report for the quarter assumed rate of return has been similar with public retirement $162.7 billion in assets as of Sept. showed both domestic and lowered twice before, to 7.2% plans managing 66.3%, or $2.45 tril- 30, grew its passive domestic equity foreign equities, accounting for from 7.25% in 2017 and to 7% in lion, of the $3.7 trillion in defined RIGHT TIME: Jay Love said Mercer allocation to $2.7 billion from $92 roughly 25% each of the fund’s 2018. According to a release from benefit assets in this universe. believes there will be opportunities for million over the year. The plan’s al- Overall, assets in DB plans of the active managers in overseas markets. location to active U.S. equity grew portfolio, surging more than 11% Mr. Folwell’s office, the rate had top 200 funds grew 5.1% to $5.88 slightly during the same period, by not been lowered in nearly 60 for the period. trillion over the year ended Sept. 30, again the second-largest fund with 8.9% to around $26 billion, its sur- The fund’s foreign equity years before 2017. The last while assets in this universe grew $426.2 billion, almost entirely in de- vey shows. holdings delivered the highest official measurement of the 28.3% for the five-year period. As- fined benefit assets, up 10.9% over Massachusetts Pension Reserves gains, at ¥5.2 trillion, but in a funding level of the state system sets in DC plans of the top 200 the year. Investment Management, Boston, sign of possible rebalancing was 86.4% as of Dec. 31, 2019. funds grew 8.6% over the year to The third-largest fund was Cali- also shifted more assets into pas- ended the period with a 25.36% $2.81 trillion, while assets in this fornia State Teachers’ Retirement sively managed strategies. The pen- share of the portfolio, down from Calif. fund sets pacing universe rose 55.1% over the five System, West Sacramento, with sion fund, which had $79.5 billion 25.88% as of Sept. 30. years. $259.2 billion, also mainly DB as- assets as of Sept. 30, increased its The $10.8 billion San Bernardi- Over the year, growth of assets in sets. The fund’s assets grew 6.5% passive U.S. equity allocation 41.2% no County (Calif.) Employees’ liability-driven investing stood out over the year. to $15.1 billion over the year, while S.F. fund allots $148M Retirement Association approved as the assets in defined benefit Among the largest 10 retirement its allocation to active U.S. equity The $30.7 billion San Francisco pacing plans for its private equity plans of the top 200 funds grew sig- funds, only two saw their positions dropped 72.3% to $1.6 billion over City & County Employees’ Retire- and real estate allocations for nificantly, up 27.9% to $140.4 billion, change. Washington State Invest- the year ended Sept. 30. ment System disclosed commit- 2021 through 2023, documents and up 71.8% from $81.7 billion ment Board, Olympia, moved up to Indiana Public Retirement Sys- ments and investments totaling from the pension fund show. $148 million in a report from CIO At its Jan. 7 meeting, the board 20 basis points from 50 basis over detract from the net return deliv- William J. Coaker Jr. ahead of its approved investment consultant the last few years, he said. ered, such as fund expenses and Feb. 10 board meeting. NEPC’s recommendations to U.K. fees transaction costs, and look to man- The pension fund made a direct commit $550 million to private Compare underlying costs age these down where possible, he CONTINUED FROM PAGE 2 hedge fund investment of $100 equity this year, and between $550 Naomi Clark, London-based said. million in RTW Innovation Fund, an million and $650 million per year ($70.6 billion) NatWest Group Pen- head of investment product man- For example, the £21 million opportunistic fund that invests in over the next two to three years. sion Fund in Edinburgh, said: “The agement for USS Investment Man- Wiltshire (Bristol) Limited Retire- health-care companies managed The pension fund had $1.8 billion templates have been beneficial.” agement, the in-house manager of ment Benefits Scheme, England, by RTW Investments. in private equity as of Sept. 30. “What CTI (templates) help us to the £67.6 billion Universities Su- said in its latest statement of invest- do is to standardize the data and perannuation Scheme, London, ment principles that prior to a man- The investment is classified as Meanwhile, the pension fund help us get the data faster. (The ini- added that information from the ager appointment it requires man- plans to commit about $110 an opportunistic investment tiative) gives us transaction data we CTI templates helps the fund to agers to confirm their willingness within the pension fund’s public million to real estate annually didn’t have before,” he said. “In compare underlying costs of similar to provide the information in the equities portfolio. As of Jan. 31, from 2021 through 2023. Half of time, it will also give us the benefit investment strategies and to chal- CTI template. The fund said it will the actual allocation to public these funds will target core real to compare the data” among man- lenge managers when only appoint managers equities was 39.4%. estate investments, while half will agers, he added. needed. “While for USS that provide the infor- Also, SFERS committed $32 target non-core. The pension The NatWest fund has already there were no immedi- mation in full. million to multistage venture fund’s current exposure to real used the data from the templates to ate plans to change Templates are also capital fund LAV Fund VI and $16 estate is $453 million. challenge managers about charges strategies, CTI tem- proving attractive to and to renegotiate fees with a num- plates have certainly defined contribution million to late-stage venture ber of managers, he said. One of the fostered more discus- plan executives, where capital fund LAV Fund VI Opportu- Securities lawsuits slip fund’s real estate managers charged sions with managers costs are already well- nities, both managed by Lilly Asia The number of securities legal fees that were disproportion- and identified some controlled because of a Ventures. As of Jan. 31, the class-action lawsuits filed in 2020 ately high compared with the size lessons learned,” she fee cap set at 0.75% of actual allocation to private equity dropped significantly from the of the transaction, Mr. Waugh said. said. Still, she noted assets under manage- was 22.7%. record-setting levels in 2019, Executives worked with the man- that funds should not ment and administra- ager to bring those costs down. look at costs in isolation BIG PICTURE: Hemal tion. according to a Feb. 3 report High legal costs on transactions are and should view them Popat cited CTI templates Fezhaan Yousaf, in- La. commits up to $100M released by Cornerstone Re- now reviewed in advance, he added. in the context of risk in allowing clients to take vestment operations The $23.4 billion Louisiana search and the Stanford Law Another manager of the fund and return. a holistic view of costs. manager at the Nation- Teachers’ Retirement System School Securities Class Action was so bold as to try to pass on its Hemal Popat, direc- al Employment Savings made two new commitments total- Clearinghouse. travel costs. “We have one manager tor at Mercer Ltd. in London, said Trust, London, a £15 billion defined ing up to $100 million, said Dana Plaintiffs filed 334 securities who was passing their travel costs that the CTI templates have en- contribution multiemployer plan — T. Brown, director of public class-action cases in federal and to us,” Mr. Waugh added. “They abled Mercer’s clients to take a ho- which will use the templates for the markets. state courts in 2020, a 22% manage a lot less than before,” he listic view of their investment first time for the year ending March The pension fund committed up reduction from the 427 cases said, adding that the manager was costs and focus on areas that will 31 — said in an emailed comment: not terminated. Mr. Waugh, who have the biggest impact on their “Being able to keep costs low en- to $75 million to Carlyle Credit filed in 2019. It was the first time was part of the group that devel- total spend. sures pension schemes minimize Opportunities Fund II, a middle- since 2016 that plaintiffs filed oped the CTI template, declined to “We have seen clients negotiate the drag on performance. The new market direct lending fund complaints against fewer than name the manager or specify the meaningful fee reductions once framework will allow us to make managed by Carlyle Group, and up 400 issuers in a year, according asset class. they have data to be able to bench- clear cost comparisons across our to $25 million to Cabot Industrial to the report, “Securities Class Overall, thanks to the CTI tem- mark pricing against similar man- portfolio, ensuring we get the best Value Fund VI, a value-added real Action Filings—2020 Year in plates, the fund’s running costs — dates,” he said. value for our members.” estate fund managed by Cabot Review.” including operating costs and man- The CTI templates have helped Both public and corporate plan ager fees — have been reduced to investors to identify expenses that sponsors have taken notice of the Pensions & Investments February 8, 2021 | 41

tem, Indianapolis, which had $38.6 tive management within public eq- make sure we can develop the billion in total plan assets as of uities.” short-term bond portfolio … which Sept. 30, increased its passive U.S. “One of the things we’ve seen is liquid itself, but gives us slightly equity allocation 41% to $3.4 billion now is an unprecedented level of more returns than three-month over the year. Indiana’s allocation to market concentration in the S&P Treasury bonds,” Mr. Perry said. active U.S. equity dropped 32.2% to 500. The market cap concentration “I wanted more control of my li- $932 million over the year ended of the top five stocks in the S&P 500 quidity. Some people say you can Sept. 30. now is greater than it was during get liquidity from stocks, to which I the dot-com bubble. The FAANG say, if the market goes down, do I Active opportunities stocks accounted for over 50% of re- want to sell stocks for cash?” he Jay Love, the Atlanta-based U.S. turns in 2020, so on an absolute ba- said. investment leader for Mercer LLC, sis there may be even more risk said he “would have expected pas- embedded in passive than active. Inflation sive allocations to grow (as) this has We certainly think, for now, active In this year’s survey, the defined a been a period dominated by makes a lot of sense,” he added. benefit plans in the top 200 saw megacap growth stocks, which cov- The State of Wisconsin Invest- their collective assets in inflation- ers the FAANG stocks,” in the S&P ment Board, Madison, which had protected securities drop 11.6% to 500 index. $116.9 billion of its $124.5 billion of $56.3 billion over the year ended “Active managers are generally total assets in defined benefit plans Sept. 30. Over the five-year period going to have lower weights to — saw opportunities in active man- ended Sept. 30, assets in this uni- those areas, so their returns will be agement and increased its alloca- verse were down 25.3% from $75.4 weaker. I would expect the return to tion to active global equity by 18.8% billion. passive to be higher for that alone. to $32.8 billion over the year. Over Mr. Love at Mercer said the in- And beyond that, some (invest- the period, Wisconsin’s passive vestment consultant sees increased ment) committees may have been global equity allocation dropped ‘MORE CONTROL’: Mansco Perry III’s Minnesota fund boosted cash for liquidity. chances of moderate inflation oc- looking at the performance of their 14.3% to $26.4 billion. curring in the next two to five years. active managers and decided to go we worked with our consultant on. the moment, whether that be pri- “The Fed is trying hard to get in- passive,” Mr. Love said. Pandemic impact That process looks at the long-term vate assets that are only accessible flation up and it’s a tough thing to Despite increased allocations to Within the top 200 funds’ defined return expectations by asset class- through REITs or assets that are at- do, but the extreme monetary stim- passive among some large DB benefit plans, assets in real estate es,” Mr. Palmer said. tractive because “they were overly ulus which is expected to be cou- plans, Mr. Love said that Mercer investment trusts dropped 19.8% to “REITs had a similar return ex- discounted due to the threat of CO- pled with fiscal stimulus, does in- does believe the opportunity for $28 billion over the year ended pectation to our private assets, but VID and may rebound,” he added. crease the odds that we will “successful active management got Sept. 30, the survey found. were expected to be two times more P&I’s survey also found that as- experience moderate inflation in better in 2020.” The Maryland State Retirement volatile,” he added, noting that this sets in cash grew 20.8% to $105.5 the medium term of two to five “We do think that the dispersion and Pension System, Baltimore, turned out to be particularly true in billion for the top 200 DB plans over years,” Mr. Love said, adding that in (stock) valuations, which drives which had $57.3 billion in assets as 2020 given the pandemic’s impact the year ended Sept. 30. the Biden administration plans for opportunity for active manage- of Sept. 30, confirmed it terminated on real estate valuations. Mansco Perry III, executive di- more fiscal stimulus than was pro- ment, definitely widened in 2020,” its two REITs managers in July 2019, “Going forward, we do think we rector and CIO of the Minnesota posed by the last White House ad- he said. which collectively managed $531 can use REITs tactically to build out State Board of Investment, St. Paul, ministration. While some pension plans may million, or 1%, of the fund’s assets. our real estate portfolio, but we which had $85.7 billion in assets as Mr. Pliner also noted that Willis have moved away from active man- Andrew Palmer, CIO of the pen- haven’t done so yet. We are working of Sept. 30, confirmed the fund in- Towers Watson does “see some po- agement in the U.S., since valuation sion fund, said in an interview that on the mechanisms to do that and creased its defined benefit assets in tential for inflation to rise,” though dispersions are widest there, Mr. the plan got rid of its dedicated RE- the analytical tools to figure out cash to nearly $4 billion, up from not significantly. The firm recom- Love does think there will be op- ITs sleeve, although it does have when it’s an appropriate time to use $577 million in Sept. 30, 2019. mends that pension plans have as- portunity in international equity, some exposure to the asset class them. We do believe it’s a viable and The move was made in order to set class exposures “that would do including emerging markets equity. through its public market equities attractive asset class,” Mr. Palmer allow additional control over liquid- well in an inflationary environment To this point, Mr. Pliner also not- portfolio. said. ity following the economic fallout of given the level of fiscal stimulus ex- ed that Willis Towers Watson “cer- The decision to lower its expo- The Maryland pension fund is the pandemic, he said. pected — but at the same time we tainly understands the move to sure to REITs was “a product of our still evaluating what areas of the “We will essentially, every quar- don’t necessarily think it is immi- passive, but we are advocates of ac- 2019 asset allocation process that REIT market would be attractive at ter, always have enough cash to nent,” he added. n

CTI templates and want their current and new managers to take the templates seriously, even if the CTI Managers in U.K. question what disclosure really means is currently considered an industry Some money managers operating in the U.K. Investment Management Ltd. and BlackRock firm's disclosure did not meet what was standard rather than a regulatory have been called out for not complying with cost Inc. But these managers refuted ClearGlass' required, he said. requirement. disclosure industry standards, but sources assessment, saying that firms that gather the While the managers argued that they argue a big part of the problem is that investors cost disclosure initiative's templates on behalf supplied information in line with regulatory Manager difficulties of investors asked for additional details on fees requirements, both managers said they are Meanwhile, some managers are and managers can differ on what’s sufficient having a harder time meeting the disclosure and how it’s presented. and costs beyond what is required by the CTI. working with the ClearGlass to deliver the rigor of the new expectations from Cost templates created by an investor and "We do not accept the assessment from information in the template that investors their investors, managers and con- manager group known as the Cost Transparency ClearGlass and are extremely disappointed that requested. sultants said. Initiative aim at helping U.K. investors deter- they have ignored the fact that our reporting on Also, some private markets managers USS’ Ms. Clark said that some of mine "hidden" non-management fees that fees and performance fulfills regulatory disagreed with their assessment. One of these the fund’s external managers are money managers charge as part of overall obligations," an Insight spokesman said in an managers, who didn’t want to be named, said less familiar with the templates, costs. They also help to determine transaction email, adding that the firm's disclosure was fully that ClearGlass' results were a “surprise” and which the fund requires its manag- costs. in line with the Cost Transparency Initiative's were considered “unfair.” ers to fill out. “Some were already Since the introduction of the templates in standards and guidance from the Pensions and The manager, which was one of the 30 well-versed with CTI but others, Lifetime Savings Association, which was managers shamed by ClearGlass in January, newer to the CTI, required more di- 2018, retirement plans have been requesting rect engagement to ensure all data information on manager costs via companies involved in its development. said the firm works very closely with its fields were correctly interpreted,” that collect this information. "Despite fulfilling our regulatory obligations investors and is transparent about all the she said. In January, one of these firms, ClearGlass and providing the highest quality of reporting, information that LPs expect to receive. At the same time there are man- Ltd., published a list of 30 managers that it said ClearGlass has insisted that we provide reports Christopher Sier, executive chairman at agers that have had difficulties in had failed to provide sufficient information on which go beyond these standards," the Insight ClearGlass, said that managers have failed providing cost information in full costs to their investors. spokesman added. because they did not deliver the data in the time due to the specificity of the strate- A firm could fail the assessment, ClearGlass A BlackRock spokesman said in a separate period required by their investors or delivered gies they are running, sources said. said, because it delivered the requested cost emailed comment that its clients receive all the the data in a format in line with requirements Mr. Waugh said that some strate- data late, provided it in a format other than the required disclosures to help them make under other rules rather than the more complex gies will require more work from informed decisions on the value of their demands of the U.K. Financial Conduct managers to supply the data re- official CTI template or provided too little quired by the CTI templates, such information on fee breakdowns. investments. In templates collected by Clear- Authority-endorsed, CTI standards. as those running liability-driven Among the 30 managers were Insight Glass for BlackRock's clients the format of the — PAULINA PIELICHATA investment programs or private market strategies. Where there are swap dealings priced in over-the- ClearGlass Ltd., which said that 30 consultancy that supplies informa- sion funds believe general partner looking at improving the tem- counter markets, it is harder to get managers out of 403 firms that they tion to investors about fee trends as costs count as part of fees, while plates. “We are looking at additions pricing for transaction costs, he approached to submit CTI tem- well as gathers CTI templates from managers might think it is a shared and improvements to some tem- said. plates on behalf of their clients did managers on behalf of investors, revenue that comes back to the plates,” Mr. Dabrowski said. The “But it has been two years and not deliver the data to their inves- said that some private markets pension fund as a return, he said. CTI board is working on a template managers should now be able to tors on time or in the correct for- managers could interpret their for LDI strategies, as well as to comply. There shouldn’t be any ex- mat. ClearGlass also participated in costs differently to investors. Template improvements help with issues around fund-of- cuses,” he said. the development of the template. “That is in an area where manag- For managers that want to de- fund structures and custody costs. Some managers were recently However, John Simmonds, prin- ers are least likely to comply (with liver the information but have The templates will be updated in called out by fee analytics firm cipal of CEM Benchmarking Inc., a CTI templates),” he said. Some pen- struggled to do it well, the PLSA is the spring, he said. n 42 | February 8, 2021 Pensions & Investments

One Aberdeen executive, who about crafting Aberdeen’s culture structing their portfolios this year, declined to be named, said employ- in the region. “It just happened and they’re saying “let’s have 2% or 3% Aberdeen ees welcomed the news that “Hugh … as I was employee No. 1 and the in China. Previously, it would have Carolina is staying on as chairman” and that boss, I guess it’s reflective of me,” he been zero,” he said. CONTINUED FROM PAGE 2 CONTINUED FROM PAGE 3 a “client guy” like Mr. Buehlmann is conceded, while noting that a firm’s As of Sept. 30, strategy assets being brought in to complement Mr. culture is forever evolving over ‘Fewer hubs’ we took stock, we felt that there was were back up to $19.2 billion, ac- Young’s talents as an investor. time. Mr. Bird, the parent company’s this unnecessary complexity and cording to eVestment LLC. It’s always difficult to manage the newly installed CEO, has publicly unnecessary required complexity.” Elsewhere, ASI’s Asia-Pacific ex- departure of these “very iconic fig- Work culture important said that the firm’s far-flung money The portfolio included five asset Japan and China A-shares strate- ures in the industry” but Stephen Boiling Aberdeen’s culture in the management business, with offices classes — like mixed credit and gies strongly outperformed their Bird, the Citibank veteran who be- region down to its essence, Mr. in more than 30 countries globally, public and private infrastructure — benchmark by 5.88 and 12.71 per- came CEO of parent company Stan- Young said “it’s still ultimately that can be streamlined to work out of with target weights of 3% or less. centage points for the year, respec- dard Life Aberdeen PLC five collegiate aspect — not having stars, “fewer hubs.” On Jan. 28, the com- “Not that some of those options tively. months ago, seems to be managing working together and being polite pany announced that Aberdeen weren’t bad to have in the portfolio In line with that improvement, Mr. Young’s transition “very grace- to people. In some sense, big ele- Standard Life’s Indonesian office but requiring (the RSIC) to always “we’ve had quite a nice amount of fully,” the executive added. ments of it are non-numeric so it’s will be shut down by mid-2021. It have those in the portfolio was money in the door” this year, Mr. Still, Mr. Buelhmann — or any not just ‘have you performed well, has 10 offices in the Asia-Pacific re- probably not necessarily the best Young said. He declined to provide other executive for that matter — have your stock recommendations gion, including Indonesia. course of action for us,” he added. details. could face challenges taking the gone up or have you sold a lot.’” Mr. Bird has likewise backed an The portfolio was set up so that A Hong Kong-based spokes- reins from someone who’s succeed- But the poor performance of expansion of Aberdeen Standard “complexity was the default,” Mr. woman for the firm said Mr. Young’s ed in quietly establishing a singular 2017 prompted ASI’s team to “look Life’s passive, exchange-traded Hitchcock said, so he and his team Asia-Pacific team oversaw a com- money management culture in Sin- closely at what we’re doing, what fund offerings, which ASI estab- went to work on simplifying it. bined $36 billion across all asset gapore over a 29-year we’ve done wrong,” Mr. lished a beachhead in with its April, classes as of June 2020, roughly span. Young said. 2018 acquisition of New York-based Recalibrating 6.4% of the U.K.-centered firm’s to- “It’s not a hard- While the central ETF Securities Advisors LLC’s $2.8 Over the course of roughly 15 tal assets under management at nosed investment goal of putting together billion U.S. business. months, with the help of its general that time. banking culture,” Mr. a portfolio of really Mr. Young, a veteran of active consultant, Meketa Investment Young said. “It’s a fairly good quality companies management, called passive strate- Group, and the commission, staff Reassurance for clients — in a sense — free and remained unchanged, gies a commodity business he can’t came up with a plan to reduce port- The pickup in the firm’s perfor- easy culture, which su- some choices, like re- get excited about. But he conceded folio complexity and make simplifi- mance over the past year is provid- perficially you could maining very light in that growing opportunities to part- cation its default. ing clients with some reassurance mistake for a lazy cul- China over gover- ner with sophisticated clients, con- In April 2020, the commission as they digest news of ASI’s leader- ture but actually people nance-related concerns structing broad portfolios to meet approved a simplified policy port- ship shuffle. work very hard,” he COMING IN: Rene about that country’s their needs, make it a commodity folio consisting of five asset classes: “There is always a risk” when said. Buehlmann is coming variable interest enti- that a “fully fledged asset manager” significant leadership changes oc- The trick is to find from UBS to lead Asia ties structure — which has to have. cur and it’s too early to know what “passionate people,” Mr. for Aberdeen Standard. allow a public company Looking back at the continued the changes at ASI portend, noted Young said. “You don’t to retain a controlling growth of Aberdeen Standard In- Charles Wu, chief investment offi- need to beat them up because interest in an entity without hold- vestments and what that has meant Wellness cer of State Super, a A$44 billion they’re passionate and then you can ing a majority of its shares — were for the money manager’s culture in CONTINUED FROM PAGE 4 ($33.9 billion) Sydney-based super be free and easy and passionate — re-examined. Asia, Mr. Young said while he con- fund. He said his team reached out a nice combination,” he said. That It took a long time to get comfort- tinues to place considerable impor- using social channels,” Mr. Cochran to the firm’s managing director in kind of environment “allows you to able with VIEs and “we still see the tance on things that can’t be mea- said, adding that 10 different videos Australia to get a better under- be your own person rather than just vulnerabilities of those structures sured, as “you become a bigger addressing issues, such as switch- standing of the organizational having to go for broke on the mon- but … with the benefits of hind- company with human resources ing funds in the pandemic were changes afoot. ey side,” he added. sight, we should have closed our teams, people want to rank these published. Some of these videos re- Still, Mr. Wu noted, “on the actual The firm’s regional headquarters eyes and plunged in regardless,” Mr. things. It’s inevitable but that’s what corded 300,000 views in just over a number front, our investment in in Singapore is located in a two- Young said. I get less passionate about so in month, he said. And another group the ASI Australian small-cap strat- story Chinese shophouse near the Ironically, Aberdeen Standard some sense I’m quite happy with of 1,000 executives from participat- egy has delivered strong excess re- Raffles section of the city’s center Investments’ China A-shares strat- my new role, stepping away from ing sponsors watched a coronavi- turns since May 2018 (and) last year — both a short walk and a consider- egy has been one of the firm’s big- those elements,” he said. rus-themed webinar. was high single digits.” He declined able psychological distance from gest magnets for investment flows Going forward, Mr. Young said “We also created a redundancy to say what State Super’s allocation the skyscrapers that house the vast over the past year, Mr. Young said. A clients and consultants who have hub for (manufacturers) that have to ASI’s strategy is at present. majority of money managers in spokeswoman for the firm said the known him as the face of the com- had to close down plants. That’s Mr. Young said his part in the re- Singapore. fund just reached $6 billion in as- pany over the past three decades completely new content that we vamped lineup — taking on the The offices, meanwhile, are dom- sets under management, almost shouldn’t see his decision to step have created as a result of employer newly created title of chairman, inated by Mr. Young’s eclectic art double the year-earlier total. back from a management role as a demand,” he said. Within the hub, Asia and focusing on investing — collection, giving them as much the Mr. Young said while retail inves- major source of uncertainty. “I’ll people can find information on im- amounts to jettisoning administra- feel of an avant garde museum as a tors account for some of those in- still be around as chairman, for proving digital skills, for example, tive responsibilities he wasn’t hell- workplace. flows, private banks and insurance what it’s worth. The driver obvious- job searching online, as well as tips bent on retaining and getting back Mr. Young said he didn’t spend a companies are making allocations ly will be Rene and I’m there to of- on managing debt. “to what I enjoy doing.” lot of time thinking about how to go as well. When insurers are confer advice if he needs it,” he said.. n Also, the £36.1 billion Pension

Asset owners like Florida SBA through the early stages of the pan- positive position,” Mr. Denson said, rebalanced the portfolio to policy said they found that internal man- demic to meet benefit payments adding that the core-fund return targets monthly, Mr. Denson said, Investing agement of a significant portion of and to harvest returns as equity was 106 basis points above the but added that “at the same time, their defined benefit portfolios was markets began to improve in April. plan’s benchmark. staff used discretion to initiate CONTINUED FROM PAGE 1 a distinct advantage during tumul- Ms. Romano said the investment “This 2020 outperformance was overweight positions in higher re- of the Florida State Board of Ad- tuous markets early last year. team also invested in opportunities due to our internal investment turn/higher risk asset classes, like ministration, Tallahassee, in an in- created by the market dislocation management staff and external equities and high-yield bonds, dur- terview. Internal advantage including in private real estate and partners sticking to their investing the first quarter, to the ultimate The SBA managed a total of $168 Alison Romano, the SBA’s deputy real estate investment trusts, pri- ment strategies in a benefit of the plan.” billion in defined benefit plan as- CIO, said in an interview that “we vate credit and private equity. disciplined fashion and SWIB also managed sets and $12.2 billion in defined had the right tools to operate when “We have long-term relation- taking advantage of the $6.5 billion in the state’s contribution plan assets as of Sept. COVID hit last year: the right asset ships and partnerships with alter- significant market dis- defined contribution 30, according to data from P&I’s allocation, the right crew and the native money managers and were locations that occurred plan of as Sept. 30. survey of the largest retirement right technology to navigate the able to get into the funds we wanted in the first quarter, po- plans. situation.” to” when other plans could not, Ms. sitioning the fund for Quick changes Despite their resolve to stay the Adhering to the pension plan’s Romano said. success over the bal- At the start of the course and adhere to their asset al- asset allocation was the investment The internal investment man- ance of the year,” Mr. pandemic, officials of locations, many plan sponsors team’s first priority, to ensure the agement team at the State of Wis- Denson said. the $60.4 billion Los needed reassurance during the in- board could maintain sufficient li- consin Investment Board, Madison, As a long-term in- Angeles County Em- tense six-week “market free fall” quidity to pay benefits, Ms. Romano also was instrumental in managing vestor, Mr. Denson add- DELIVERED: Douglas C. ployees Retirement As- beginning in February last year, said. the Wisconsin Retirement System ed that “at a time when Wesley said SURS’ new sociation, Pasadena, said Jeffrey MacLean, CEO of in- The board’s internal asset-class through the 2020 pandemic as well many investors were crisis offset allocation Calif., made quick vestment consultant Verus Adviso- investment teams helped in deci- as in producing a preliminary net facing too much uncer- worked as expected. changes to procedures ry Inc., El Segundo, Calif., in an in- sion-making for rebalancing the return of 15.2% for the defined ben- tainty to commit addi- and policies to cope terview. portfolio, she said, noting “tough efit plan’s core fund, said Edwin tional capital to external managers, with market turmoil. “I did a lot of hand-holding, a lot markets brought out the best in the Denson, managing director, asset SWIB’s investment discretion, ex- “In March, we started a rolling of explaining, a lot of calming peo- way the teams collaborated across and risk allocation, in an email re- pert staff and long-term focus al- 90-day cash forecast to look at in- ple down about the unusually high asset classes.” sponse to questions. lowed us to move quickly, putting flows and outflows on a daily basis level of market volatility and a lot of As of Sept. 30, $77.4 billion of the The defined benefit plan totaled more than $1.1 billion with high- to make sure we had three months reminding institutional investors to DB plan was managed internally. $118 billion as of Sept. 30 of which conviction, capacity-constrained of cash at all times,” said CIO Jona- maintain their long-term asset al- The SBA team actively rebal- $58.8 billion was managed inter- managers.” than Grabel in an interview. locations over the past year,” Mr. anced assets between equities, li- nally. Like other large asset owners, “We used our cash overlay to stay MacLean said. quidity portfolios and fixed income “SWIB ended the year in a strong SWIB’s investment team diligently true to our strategic targets without Pensions & Investments February 8, 2021 | 43

public equity (with a 46% target), to the Bloomberg Barclays Aggre- put our foot on the gas a little bit bonds (26%), real assets (12%), pri- gate. South Carolina law provides faster, we would’ve gotten here vate equity (9%) and private debt that a maximum of 70% of the port- (sooner), but that’s also having the (7%). folio can be invested in equities, so benefit of hindsight,” he added. The new policy portfolio, which the RSIC limited equity exposure of Still, much like investors of all went live July 1, preserved the the reference portfolio accordingly, sizes, the RSIC has enjoyed strong RSIC’s ability to go off benchmark Mr. Hitchcock said. returns in recent months. “When — its bond portfolio can include you do something and you think emerging market debt, for instance Thinking long term about the time period over which — but unlike in previous iterations In launching its policy portfolio, you expect to see the benefit as of the portfolio, there are no re- the RSIC wanted to anchor itself in years, and when you see more ben- quired allocations to other asset the thought that it’s a long-term in- efit than what you expected in six classes. “We could use those (addi- vestor with an infinite investment months, you scratch your head a tional asset classes) when we had horizon, Mr. Hitchcock said. little,” Mr. Berg said. conviction that adding that level of “We wanted to make sure that we The system has “more than made complexity … would be rewarding, weren’t making changes just for the PARED DOWN: CEO Michael Hitchcock, left, and CIO Geoffrey Berg developed a plan up for” its less-than-stellar perfor- rather than having it to be always sake of making changes, but we that reduces portfolio complexity and makes simplification its default. mance last fiscal year, he added. on,” Mr. Hitchcock said. wanted to arrive at a portfolio that The RSIC has posted a net return To get the current allocation, the we felt comfortable, a policy alloca- “From an organization perspec- fees, Mr. Hitchcock said. of 15.9% fiscal year to date as of Dec. RSIC in 2019 created a reference tion that we felt comfortable having tive, that allows us to focus the or- 31, paced by a 25.2% return in its portfolio — a two-asset-class for decades rather than years, and ganizational resources on the parts Ups and downs public equities, which accounts for benchmark portfolio composed of something that we had conviction of the portfolio where we really In the fiscal year ended June 30, 48.9% of the total portfolio. stocks and bonds — that most in and weren’t necessarily trying to think that we can get a consistent the commission posted a net return How long the period of solid re- closely expressed the risk required time the markets,” he added. outperformance above what you of -1.6%, below its benchmark of turns will last is anyone’s guess, but to earn a return that is expected to On the public side of the portfo- can get in public markets,” Mr. 0.13%, due in large part to the early the current situation gives Mr. Berg exceed the portfolio’s assumed an- lio — the combined 74.2% allocated Hitchcock said. The RSIC has hired economic impact of the COVID-19 pause. “Any time the market’s up a nual rate of return — 7.3% — while to public equity and bonds as of an additional private equity officer pandemic. lot, I get cautious,” he said. “I think also avoiding a greater than 5% Sept. 30 when the plan had $32.5 and repurposed other staff mem- The RSIC would’ve been better the only appropriate perspective probability of requiring additional billion in assets — the RSIC has bers to the private side of the port- off had the new strategy been in right now is caution, (but) we’re not contribution increases in the next implemented a nearly entirely pas- folio from the public side, he added. place before the markets sunk in scared, we’re not heading for the five years. The reference portfolio is sive strategy, managed externally. Moreover, the passive strategy March, Mr. Hitchcock said. “There’s hills or anything. As far as the qual- made up of 70% public equities Previously, its equity and bond on the public side will save the a whole lot of ‘woulda, coulda, ity of execution on our asset alloca- benchmarked to the MSCI ACWI portfolios were about 40% and 25% RSIC roughly $30 million to $40 shoulda,’ and there have been some tion, I feel really good.” IMI and 30% bonds benchmarked passive, respectively. million annually in management moments where if only we would’ve That’s putting things simply. n

tility. The guide also helps plan par- and December, he added. their lives. For example, in lock- ticipants connect with independent It’s that type of proactive ap- down Merchant Navy Officers Pen- organizations to verify the informa- proach that’s intensified through- sion Fund, Surrey, England, intro- tion they are receiving from a pro- out the pandemic, he said. duced webinars over 13 weeks vider to ensure it’s not a scam. The During the pandemic some com- — run by Wellbeing People Ltd. — COVID-19 guide has received a panies that didn’t traditionally fa- aimed at helping participants to regular flow of web traffic since it cilitate access to short-term hard- manage their health and well-being was published on the PPF’s website ship loans from third-party firms in the pandemic, including dealing and has reached more than 375,000 added that to their suite of financial with lack of movement and lack of people, a spokeswoman said. wellness tools, he said. Such loans sleep as well as managing nutrition Mercer Consulting Ltd.’s COV- don’t get rid of a participant’s debt and mastering time. ID-19 response aimed to help cli- problem, he said. But plan partici- “The response was phenomenal,” ents — both companies and indi- pants can get a better rate on repay- said Rory Murphy, chairman of the viduals — via online resources. ments even with an average credit £1 billion ($1.4 billion) pension fund. The toolkit, which the consul- score, he added, because the loan is “People have said it was an absolute tant launched in April, provides deducted and repaid from the spon- lifeline for them in terms of having employees with practical informa- sor’s payroll — a practice seen as coping mechanisms,” he added. tion on different areas in personal lessening the risk that the loan Mr. Murphy added that out of finance, including managing bud- won’t be repaid. Also, harnessing 24,000 participants in the fund, 400 PANDEMIC HELP: Rory Murphy said participants called the program ‘an absolute lifeline.’ gets, debt or mortgage payments in the economies of scale presented by people attended a webinar every a “simple and concise way,” said a sponsor’s plan also helps ensure a single week at any given point. Mr. Protection Fund, London, along- The guide alerts plan partici- Jeremy Milton, principal defined better interest rate than individuals Murphy added: “It has indicated side a group of regulators devel- pants about the danger of fraud and contribution and financial well- could secure on their own. there are more things that we can oped a new guide in June to help the consequences of taking their ness in Bristol, England. About But it’s not just only about finan- do,” such as potentially negotiating retirees make better decisions dur- retirement savings out to prevent 4,000 visitors accessed the Mercer cial wellness. Plan sponsors want to better rates on car or life insurance ing the pandemic. further losses during market vola- Employer Resource between April help participants in other areas of on behalf of participants. n having to be a forced seller of any outcomes to strategy and process.” returns of most risk assets.” for March 2020, to early July.” PSRS/PEERS investment staff securities at an inopportune time,” SURS’ new long-term asset allo- What did work well for the SURS had no difficulty meeting benefit he said. Illinois SURS cation is 26% stabilized growth — investment team was use of a cash payments because the system’s as- In areas where LACERA was un- State Universities Retirement hedge funds of funds, option strate- overlay for portfolio rebalancing set allocation includes a 20% liquid- derweight, Mr. Grabel said plan of- System of Illinois, Champaign, en- gies, credit fixed income and core and a futures-based program that ity sleeve in cash and U.S. Treasury ficials continued to make new in- countered some difficulty in the real assets; 25% traditional growth provided the mechanism “to main- bonds, Mr. Husting said. vestments, some of them with new second year of implementing a new — U.S. equity, non-U.S. equity, glob- tain the appropriate equity and U.S. Staff also used their investment managers. asset allocation due to impacts of al equity and real estate investment Treasury (bond) exposure,” Mr. discretion to employ direct leverage For example, in May, LACERA’s the COVID-19 outbreak. trusts; 20% crisis-risk offset — long- Wesley said. on the total portfolio to assist in re- board invested $400 million in The board approved the new al- duration bonds, systematic trend SURS also manages a defined balancing asset allocations to their Magnetar Financial, an illiquid location for the defined benefit following and alternative risk pre- contribution plan, which totaled $3 targets, including to increase the credit hedge fund strategy man- plan, which totaled $20.5 billion as mia; 15% non-traditional growth — billion as of Sept. 30. fund’s equity allocation as markets aged by Magnetar Capital LLC, of Sept. 30, in 2018 after an asset- non-core real assets and private began to rebound. Evanston, Ill., and $300 million in liability study. equity; 8% principal protection — ‘Really good year’ Because the market’s recovery Hudson Bay Fund, a relative value The new model “organizes SURS’ core fixed income; and 6% inflation- The investment staff of the Pub- from its swift, steep decline in Feb- multistrategy hedge fund managed assets within a functional frame- sensitive — Treasury inflation-pro- lic School and Education Employee ruary was so rapid, Mr. Husting said by Hudson Bay Capital Manage- work rather than the traditional tected securities and commodities. Retirement Systems of Missouri, “investment opportunities from the ment LP, New York. descriptive-oriented asset-based SURS’ previous long-term asset Jefferson City, had what CIO Craig market dislocation dried up very Both are new relationships for framework. In this approach, assets allocation was 23% U.S. equity, 19% Husting described as a “really good fast” and the investment team the pension plan. are grouped by similar risk profiles, each non-U.S. equity and fixed in- year because we stuck to our asset wasn’t able to invest in some of the Magnetar manages $12.3 billion rather than asset-class name,” said come, 8% global equity, 6% each pri- allocation process” for managing new private market funds they in hedge fund and other alternative CIO Douglas C. Wesley in an email. vate equity and direct real estate, the defined benefit plan. wanted to. strategies. Hudson Bay manages $8 The new allocation classifies as- 5% hedged strategies, 4% each TIPS The plan returned a net 13% for The investment team was able to billion in multistrategy hedge sets as growth-oriented or diversi- and REITS, 3% emerging market the year ended Dec. 31. The pension meet a capital call from a private funds. fying strategies and separates core debt, 2% commodities and 1% op- plan had $47.5 billion in assets as of credit fund it had committed to pre- LACERA officials have stayed and non-core real assets and core portunity fund. Sept. 30. pandemic in the first half of the away from making short-term in- and credit fixed income into sepa- Mr. Wesley said SURS’ investment Mr. Husting stressed the impor- year and set up some direct lending vestment decisions during the CO- rate portfolios, Mr. Wesley said. He team “did experience challenges re- tance of “good governance and good deals with private companies be- VID-19 crisis, Mr. Grabel said, not- added that a new allocation to cri- structuring the portfolio in 2020. leadership” from the fund’s board ginning in March and throughout ing “it is difficult to be tactically sis-risk offset strategies “as expect- Market volatility, arising from the and staff, adding “having these two the summer, Mr. Husting said. n correct in the face of tremendous ed, delivered positive returns dur- pandemic, caused us to delay the elements gives you such an advan- uncertainty. We adhere to our in- ing the peak of the COVID market (restructuring of the) traditional tage as an investor and contributed Arleen Jacobius contributed to this vestment beliefs and attribute good correction, offsetting the negative growth portfolio, originally planned to the plan’s very good return.” story. 44 | February 8, 2021 Pensions & Investments CHANGES AHEAD “The growth in invested private while being cognizant of the risks. credit dollars was also driven by CalPERS does not have a private Credit low redemptions as well as in- credit allocation but of cials are in- Los Angeles Unified School District is searching for third-party creased borrowing (by companies) terested in investing more in the CONTINUED FROM PAGE 3 administrators for its 403(b) plan to coordinate plan contributions, to meet liquidity needs, add-on ac- asset class along with other alter- compliance, administration and transactions, according to the RFP posted Sweeney added. To mitigate against quisitions, and/or to fund growth native investments. CalPERS is em- on the district’s procurement website. According to the RFP, the selected the risks, New York State Common initiatives,” he said. barking on a new asset-liability re- administrator will “assist the LAUSD in complying with the nal 403(b) of cials are continuing to be mind- What’s more, prior to the begin- view in 2021 that is expected to be regulations” regarding active product providers and legacy 403(b) product ful in their due diligence, promising ning of the pandemic, “there had completed in November. Pension providers. There are 26 active 403(b) plan providers serving district plan new investment ideas while moni- been a strong M&A market that had fund of cials are aiming to invest participants, and about 167 legacy providers, according to the RFP. The toring existing partnerships, he pushed leverage toward record lev- more capital into private credit total asset size of the 403(b) plan was not immediately available. Propos- said. els,” resulting in a need for private along with other alternative invest- als are due at 3 p.m. PST on Feb. 15. “In general, we want to under- credit, said Christopher Taylor, ment asset classes to boost returns, stand the risks we are taking, while head of New York Life Investments Dan Bienvenue, interim CIO of the HAVE SOME NEWS? Los Angeles County Employees Retire- attempting to eliminate the surpris- Alternatives and CEO of New York $426.2 billion California Public Em- ment Association, Pasadena, Calif., is es,” Mr. Sweeney said. Life’s $11.8 billion credit manager ployees’ Retirement System, Sacra- Please submit news of searching for a private equity consultant. The subsidiary, Madison Capital Fund- mento, said at a stakeholders meet- changes to David $60 billion pension fund has $7.1 billion Care needed ing LLC. ing on Jan. 21. Schepp, news editor, at invested in private equity and a target of 10% As asset owners ramp up their Willis Towers Watson estimates [email protected] with an allocation range of 7% to 13%. The exposure to private credit, they also the total size of all private debt in- Higher return potential RFP is posted on LACERA’s website. Proposals need to be careful because if de- cluding real assets, specialty - Private debt has higher expected are due at 3 p.m. PST on Feb. 26. faults climb or demand for loans nance, distress debt and longer returns than its publicly traded decline, their portfolios could be counterpart, Mr. Bienvenue said. Watertown Contributory Retirement System is searching for a core negatively affected, industry insid- Growth of private But it is relatively illiquid and “re- xed-income manager or managers to run $35 million to $40 million for the ers say. quires expertise and it takes time to $250 million pension fund. DiMeo Schneider & Associates, investment “Manager selection will be key in credit/debt assets deploy” capital into the asset class, consultant to the plan, is assisting with the search. The RFP is available on making sure investors achieve good in DB plans he said. DiMeo Schneider’s website. Proposals are due by 4 p.m. EST on Feb. 26. private credit outcomes, particular- Among the top 200 funds; assets While it doesn’t have a dedicated ly given the fund horizon means are in billions as of Sept. 30. private credit allocation, CalPERS San Luis Obispo County (Calif.) Pension Trust issued an RFI for a locking up capital for ve to seven made several investments — in- private markets consultant. The plan currently does not have a private years,” said Nimisha Srivastava, $66 cluding a $2 billion commitment to markets investment consultant, con rmed Executive Director Carl Nelson in Chicago-based global head of cred- $60 West Street Strategic Solutions an email. The RFI is available on the pension trust’s website. Proposals are it, Willis Towers Watson PLC. “We Fund I, a distressed debt fund man- $54 due March 1. believe manager dispersion (differ- aged by Goldman Sachs Group, and ence in outcomes) is likely to be $48 a $350 million commitment to Sixth Small Business Association of Michigan, Lansing, is searching for greater going forward given the $42 Street Fundamental Strategies pooled plan providers. The association is seeking rms to provide its growth in strategies.” Partners (A), an opportunistic cred- members with a pooled employer plan as authorized under the SECURE Act, Key attributes to consider are $36 it fund managed by Sixth Street con rmed Scott Lyon, senior vice president of the association. SBAM manager credit underwriting skills $30 Partners LLC — last year from its consists of over 28,000 small businesses registered in Michigan that have (an experienced and large enough private equity portfolio. CalPERS $24 fewer than 500 employees and hopes to implement the PEP by late 2021 or team to properly analyze compa- had $604 million invested in private early 2022, according to the RFPs on SBAM’s website. There are three nies) and expertise in distress $18 credit as of Sept. 30, this year’s sur- RFPs: One for eligible record keepers, one for third-party administrators and should company stress rise, she vey shows. $12 one for ERISA 3(16) duciaries. Proposals are due at 5 p.m. EST on March said. Investors should also ensure The ve asset owners on this 1. that the fund size corresponds to $6 year’s list of the U.S. retirement the opportunity set the manager is $0 plans with the largest private credit Platte River Power Authority, Fort Collins, Colo., is seeking a record focused on (not being too aggres- 2018 2019 2020 portfolios are $42.2 billion Arizona keeper for two 401(a) plans and one 457(b) plan that have a total of $54 sive with fund size to focus on at- State Retirement System, with its million in assets. The RFP is available on the authority’s website. Proposals tractive return on capital for inves- portfolio up 7.3% to $8.7 billion in are due by 5 p.m. MST on March 1. tors), Ms. Srivastava added. lockup credit at about $1 trillion, the top position; New York State Driving investors into private which is comparable to the U.S. Common, with $7 billion in private Rhode Island Public Transit Authority, Providence, is searching for an credit is not only the search for high-yield bond market that is credit; $120.7 billion North Carolina investment consultant for its $134 million pension plan to provide analysis yield in a low-interest-rate envi- about $1.2 trillion, Ms. Srivastava Retirement Systems is No. 3, with and recommendations for the plan’s asset allocation, ongoing investment ronment but also returns in the said. credit assets up 8.2% to $6.2 billion; monitoring and assist the authority in the search and hiring of money form of a liquidity premium over As more money is ooding into Pennsylvania Public School Em- managers, according to an RFP posted on the state of Rhode Island’s bonds that exist right now, she said. private credit, funds are getting big- ployees is in the fourth spot with purchasing website. Proposals are due at 1 p.m. EST on March 2. “This is not always the case, but it is ger, she said. $5.2 billion; and the $180.2 billion as wide as we have seen it.” Private credit funds worldwide Florida State Board of Administra- Bristol County Retirement System, Taunton, Mass., is considering Compared to October 2019, when have been raising at least $100 bil- tion is fth with private credit as- allocating up to $20 million to a passive domestic equities fund and up to the illiquidity risk premium for U.S. lion per year since 2015, according sets up 7.1% to $3.6 billion. $10 million to a passive xed-income fund benchmarked against the Bloom- direct lending was under 50 basis to Preqin data. In 2020, 200 private New York State Common of - berg Barclays Aggregate Bond index. Segal Marco Advisors, investment points, which is below its fair value credit funds raised $117.7 billion, cials expect private credit returns consultant to the $804 million pension fund, is assisting with the search. range and therefore unattractive 11% less than the record amount of to be the result of a combination of The RFP is available on Segal Marco’s website. Proposals are due 3 p.m. relative to its holding period and capital raised in 2019, $132.1 billion income and capital appreciation, EST on March 3. public market comparisons, WTW’s by 223 private credit funds. spokesman Mr. Sweeney said. current illiquidity risk premium for “Big funds are tending to get big- The Ohio School Employees Re- Kansas City, Mo., is searching for a record keeper for its $234 million private credit is closer to 200 basis ger. We’re seeing fund sizes in- tirement System’s board added a 457 plan and $1 million 401(a) plan. The RFP is available on the Demand- points, above the fair value range. crease and what that means for re- private credit allocation “to increase Star procurement website. Registration is required. Proposals are due at 5 There is a signi cant need for turns and how selective they (the yield-oriented returns compared to p.m. CST on March 3. capital by middle-market compa- managers) will be are questions we public xed income,” CIO Farouki nies undergoing economic stress as ask,” Ms. Srivastava said. Majeed said in an email. Private Louisiana Teachers’ Retirement System, Baton Rouge, is searching a result of the pandemic, she said. If a manager raises a larger fund, credit also provides returns in the for active emerging markets equity managers to run up to $1.4 billion. The The pandemic accelerated “the such as $3.5 billion instead of the $3 form of quarterly cash distribu- $23.4 billion pension fund issued a solicitation for proposals due to the ongoing secular rotation of debt billion the manager raised for its tions, he said. pending expiration of the contracts of Dimensional Fund Advisors and capital to private capital providers last fund, the question is whether Ohio School Employees of cials Harding Loevner, both of which can rebid. The SFP is available on the away from banks,” said Christopher that credit manager will achieve the are not rushing into investments pension fund’s website. Proposals are due at 4:30 p.m. CST on March 8. G. Wright , managing director and same risk-return pro le, she said. because they have more than three head of private markets at credit “The bigger you get, the less se- years to achieve the 5% target. For a comprehensive database of search and hiring activity, visit researchcenter. manager Crescent Capital Group lective you can be,” she said. “Capital deployment will depend pionline.com/archive/piq. LP, which has about $29 billion in U.S. institutional investor inter- on opportunities and risk,” Mr. Ma- assets under management. est in the asset class is undeterred, jeed said. 

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