Orange County Employees Retirement System

Transcription

1 Orange County Employees Retirement System Investment Education Forum 8:00 am 8:45 am Continental Breakfast 8:45 am 9:00 am Welcome & Introductory Comments Girard Miller, CFA OCERS 9:00 am 10:00 am Global Custody Services: Trends, Developments & Impact of Regulations on Transparency & Risk Management Bo Abesamis & Mark Kinoshita Callan 10:00 am 10:35 am Role of Hedge Funds in the Absolute Return Space & in the Context of CALPERS & CALSTRS Decisions Allan Emkin & John Linder, CFA, CPA Pension Consulting Alliance 10:35 am 11:00 am Break 11:00 am 11:35 am Tying Alternatives Exposures to Underlying Portfolio Drivers: What are You Buying & What are You Paying for It Ian Toner, CFA & Ed Hoffman, CFA, FRM Verus Hilton Irvine MacArthur Blvd Irvine, CA Thursday, February 11, 2016 PROGRAM 11:35 am 12:10 pm Efficient Hedging of Equity Risk in Total Fund Structure Becky Gratsinger, CFA, Ryan Sullivan, Jim Voytko - RVK 12:10 pm 1:10 pm Lunch 1:10 pm 1:45 pm Optimal Allocation to Hedge Funds & Alternatives for Public Pension Funds/Use of Unconstrained Strategies in Traditional Asset Classes Peter Hill & John Lee Aon Hewitt 1:45 pm 2:30 pm Led by CIO, Girard Miller, an Interactive Panel Discussion on the Day s Themes, Possible Research Projects & Future Deliberations Allan Emkin, Ian Toner, Jim Voytko, Peter Hill & Timothy O Connell (NEPC) The goal of the Forum is to be a high quality educational event for OCERS Board members and stakeholders, and to be a forum for the exchange of ideas among Board members, staff, investment managers, consultants, and our various constituents. Conference Attire: Business Casual

2 Virgilio Bo Abesamis III Executive Vice President Callan Associates Virgilio Bo Abesamis III is an Executive Vice President and is the Manager of Callan s Trust, Custody and Securities Lending Group. He joined Callan in 1987 and is a shareholder of the firm. Bo is also responsible for client driven solutions around operational and cost efficiencies, ranging from service benchmarking to transition management. Bo has extensive experience and is widely recognized as an expert in his field. Initially, Bo worked in the Capital Markets Research group with responsibilities involving asset/liability modeling, manager structure, benchmark and database reviews, style analysis, and research. He previously managed the Specialty Performance Measurement group at Callan with an emphasis on analytics involving non-traditional asset classes, namely international, alternative investments, and real estate. He also assisted in the development of Callan's International Consulting Services and Defined Contribution Consulting Services groups. Bo earned an MBA with a double major in Finance and International Business from the University of San Francisco and a BS degree in Accounting and Finance from Ateneo de Manila, Philippines. Mark Kinoshita Vice President Callan Associates Mark is a Vice President in Callan s Trust, Custody and Securities Lending Group. His responsibilities include the intensive evaluation of global master custodians, conducting on-site due diligence visits, developing optimal operations structures and the coordination of special projects. Mark has over 20 years of experience in the asset servicing industry having worked in such areas as income collection, settlement operations, client reporting, client systems consulting, project management, product development, relationship management and business development. This knowledge provides him with a broad and unique industry perspective enabling him to understand client needs and identify solutions though a consultative approach. Mark has experience working with all constituent levels at public funds, corporate pension plans, Taft-Hartley pension plans, endowments, foundations, corporate treasury, banks, mutual funds and insurance companies. Prior to joining Callan, Mark was a business development officer for Comerica Bank s Institutional Services Group with responsibilities for trust, custody, securities lending, short-term investment products and asset management. Mark also held positions at the Bank of New York for over a decade in various technology and client facing roles in the Plan Sponsor Services Group. He began his investment career in the Global Securities Services division of Bank of America. Mark earned a BA in Political Science from the University of California, Santa Barbara. 2 P a g e

3 Allan Emkin Founder, Managing Director Pension Consulting Alliance Allan Emkin founded Pension Consulting Alliance, Inc. in 1988, with offices in Los Angeles, New York City, and Portland, Oregon. Long a member of the consulting community, Mr. Emkin has 32 years of general consulting experience emphasizing public plan administration and investment policy, as well as international, global, and real estate investments. Mr. Emkin was a Vice President at Wilshire Associates before forming PCA in Prior to his work in the consulting field, Mr. Emkin worked in the California Governor s office in the Pension Investment Unit. Before joining the Brown administration, he was a registered lobbyist for 10 years specializing in affordable housing and other matters affecting low-income families. Mr. Emkin is a frequent speaker at various conferences and educational seminars and has long standing relationships with Liberty Hill Foundation in Santa Monica, California as well as The Labor and Worklife Program at Harvard University. John Linder, CFA, CPA Principal - Pension Consulting Alliance Mr. Linder joined PCA in He has lead consultant responsibilities for several clients, and consults to PCA relationships representing over $500 billion in client assets. In addition to his client facing responsibilities, he conducts ongoing capital markets and investment strategy research. Prior to joining PCA, he was a Partner and Senior Investment/Tax Strategist at CTC Consulting in Portland, Oregon. He currently provides ongoing advice to investment committees, boards, and executive staff of plan sponsors across a broad range of ongoing investment issues. In addition to ongoing retainer consulting duties, his project consulting engagements have included: restructuring strategic investment class frameworks, consulting on risk measurement and management, leading asset-liability studies, and conducting absolute return and private partnership due diligence reviews. Prior 2004, he was engaged in various financial market roles including senior buy-side equity analyst at Alsin Capital, manager of business valuation and litigation services with the CPA firm Larson Allen Weishair & Co, LLP, and began his career in the financial services industry in 1996 at the CPA firm McGladrey & Pullen, LLP. Mr. Linder has been a speaker at multiple conferences including Pension Bridge, IMN Public Fund Summit, Markets Group Conferences, and the Institutional Investor Alpha Hedge Conference. He is a CFA charter holder and a member of the CFA Society of Portland, as well as a Board Member of the Portland Alternative Investment Association. He is a Certified Public Accountant (CPA). He received his BA in economics from Middlebury College magna cum laude, and his Masters of Accountancy (MAC) from the Kenan-Flagler School of Business at UNC Chapel Hill. 3 P a g e

4 Ian Toner, CFA Managing Director, Strategic Research - Verus Investments Mr. Toner is responsible for ensuring that the research resources at the firm are focused on solving the real problems faced by the firm's clients, and on maintaining an appropriate balance between academic rigor and practical real world client solutions. He has responsibility over all research, including manager research, capital markets research, topics of interest, and is a key contributor to the investment committee. He is particularly engaged in finding ways to ensure that new insights created at the firm are used across the whole range of clients of the firm, whether those clients are large or small, and whether the services those clients consume are discretionary or non discretionary. He joined Verus (formerly Wurts & Associates) in late 2013 from Russell Investments in Seattle, where he was most recently director, capital markets research in the investment division. He was at Russell for 7 years, and was particularly focused on two key areas: understanding the effect of currency risk on client portfolios, and understanding and managing the complex range of risks that clients and investors experience when interacting with Wall Street. Before Russell Investments he was an executive director at UBS Investment Bank in London, and a vice president at both Schroder Salomon Smith Barney and InterSec Research Corp. Earlier in his career he worked on the sell side of the institutional markets in London, focused on European equity markets. Mr. Toner has a degree in Law from the University of Oxford in the United Kingdom and holds the Chartered Financial Analyst (CFA) designation. He is a regular author and speaker on a range of investment topics. He is a member of the CFA Institute and the CFA Society of Seattle. He is also a board member at the Seattle Metropolitan Chamber of Commerce, where he also sits on the finance & audit committee. Additionally, he is a member of the advisory board of the Washington Council on International Trade. Edward J. Hoffman, CFA, FRM Managing Director, Senior Consultant - Verus Investments Mr. Hoffman brings over 20 years of experience to his clients, providing strategic investment advice to ensure that clients meet their long term investment objectives. He serves as lead consultant to both public and Taft-Hartley benefits plans. Before joining Verus (previously known as Wurts & Associates) in 2011, Mr. Hoffman served institutional clients at Legg Mason and Prudential. In addition to his client service responsibilities at Legg Mason, he served on the asset management division operating committee and Legg Mason Funds valuation committee, led corporate development initiatives including several related to the 2005 acquisition of Citigroup s asset management division, and managed a variety of product development initiatives. Today, his work in risk based advisory services provides an additional and valuable perspective to his non discretionary clients. Mr. Hoffman earned a bachelor of science (BS) in industrial management with college and university honors from Carnegie Mellon University, where he earned membership into Beta Gamma Sigma and Mortar Board honor societies. He earned a master's degree in business administration from the Harvard Business School. He has earned the Chartered Financial Analyst (CFA) designation and is certified as a Financial Risk Manager (FRM). He is also a member of the CFA Society of Los Angeles and the Global Association of Risk Professionals (GARP). 4 P a g e

5 Becky Gratsinger, CFA CEO, Senior Consultant RVK Becky is CEO and a Senior Consultant with RVK and is located in Portland office. She joined the firm in 1994 and has 20 years of experience in investment consulting and capital markets. Becky's consulting experience has spanned all institutional client types including public funds, defined benefit, defined contribution, endowment/foundation, corporate reserve, insurance, and high net worth. Her client list includes some of the firm's largest relationships. She has extensive experience in a broad range of consulting disciplines including investment policy, asset allocation, performance evaluation and attribution, investment manager searches, and asset class structure studies. In her work with some of the firm's larger clients, she has participated in innovative asset class research as well as new product and application initiatives. Becky earned her Bachelor of Science degree in Finance from Portland State University and holds the Chartered Financial Analyst designation. She is a member of the CFA Institute and a member of the CFA Society of Portland. Becky is a shareholder of the firm and currently serves on the firm's Board of Directors. Ryan Sullivan Consultant RVK Ryan joined RVK in 2007 and serves as a Consultant in Portland, Oregon office. Ryan advises some of the firm's largest public funds and also has experience consulting for corporate, endowment/foundation, and Taft-Hartley clients. In addition to his consulting relationships, Ryan is involved in setting the firm's capital markets assumptions and leads the Asset/Liability team, which is responsible for highly customized studies that include deterministic, stochastic and sensitivity analyses. Ryan earned a Masters degree in Economics from the University of Oregon. He also earned a Bachelor of Science degree in Economics from the University of Oregon. Jim Voytko President, Director of Research, Senior Consultant RVK Jim is President, Director of Research, and a Senior Consultant with RVK and is Jim is President, Director of Research, and a Senior Consultant with RVK and is located in Portland office. He joined the firm in Prior to joining RVK, Jim was the CEO/Executive Director of Oregon's statewide pension system for all employees of state and local governments, police and fire, teachers and higher education, statewide retiree health care insurance program, and statewide 457 deferred compensation program. Jim also served on the five member Oregon Investment Committee, which directed the investment of all statewide funds including the Oregon PERS pension fund, Oregon's 457 Plan and the state's Workers Compensation Fund, all totaling approximately $45 billion. Jim's experience also includes serving as Director of Research for Paine Webber, CIO and Managing Director of PNC Asset Management Group/PNC Advisors, and the deputy director and Chief Operating Officer of PaineWebber's Investment Banking 5 P a g e

6 Division. He has served as a trustee on corporate DB and DC plans and is member of the National Association of Business Economists and the Portland City Club. Jim earned his Bachelor of Arts degree from Carnegie Mellon University, a Master of Public Administration degree from the University of Washington, and Master of Public Policy degree from Harvard University. Jim is a shareholder of the firm and currently serves on the firm's Board of Directors. 6 P a g e

7 Peter Hill Global Head, Liquid Alternatives Research Aon Hewitt Peter, global head of Aon Hewitt s research into liquid alternatives, serves as a senior member of the manager research team and sits on the firm's US Investment Committee. He is responsible for all aspects of the firm's research, ratings and approval process as it relates to hedge fund products. He spends a considerable amount of time with the firm s clients in a specialist supporting role, and sits on the Portfolio Construction Committee that provides customized recommendations for clients. Peter has thirty nine years of experience in the portfolio management and pensions industry and joined Aon Hewitt in He spent 19 years at Insight Investment (formerly Clerical Medical Investment Management). His last position there was as Head of International Equities. In this role Peter was responsible for a team of 12 portfolio managers, running assets in excess of 3 billion invested across a range of global equity markets. After graduating with a degree in mathematics and statistics from Reading University, Peter spent eight years at Norwich Union Insurance Group and was responsible for marketing their pooled pension fund product to pension plan trustees. He also attended the London Business School Investment (Derivatives) program and attained the CII/Personal Finance Society's Advanced Financial Planning Certificate. John J. Lee Partner Aon Hewitt John is Partner at Aon Hewitt Investment Consulting. He is located in the Newport Beach, California office. He leads the firm s U.S. West region investment consulting team. He serves as primary investment consultant and manages consulting assignments for a select number of HEK retainer and project clients. John is responsible for all aspects of investment consulting services, including investment manager analysis and monitoring, performance evaluation, asset allocation, investment manager searches, and investment policy development. John previously managed one of the firm s Client Advisory Groups (in Chicago) including the Trust Services and Asset Transitions research group. He has served as a member of the Advisory Council for the firm s global equity and defined contribution research groups. John has also previously led research teams in international equity, custody services, and defined contribution services. He was also a member of the firm s real estate research group. Prior to joining the firm in 1994, John worked at Motorola Corporation and First Investors Corporation. He holds an A.B. degree in Economics from the University of Chicago and an M.B.A. degree from Kellogg School of Management at Northwestern University. John has 22 years of investment consulting experience and 24 years in the investment industry experience. 7 P a g e

8 Timothy O Connell Research Consultant, Alternative Assets, Hedge Funds NEPC Timothy is involved in NEPC s hedge fund research activities of long short equity and alternative equity strategies. Timothy also provides consulting and portfolio construction services to a variety of corporate, healthcare, public and endowment/foundation clients. Prior to joining NEPC in 2012, he worked as an Analyst at Wainwright Investment Counsel, LLC. As an Analyst, Timothy s responsibilities included researching a broad range of hedge fund and private equity strategies in a generalist capacity. Timothy earned his B.A. in Political Science from the University of California at Berkeley and is currently pursuing the Chartered Financial Analyst (CFA) designation. All supporting documentation is available for public review in the retirement office during regular business hours, 8:00 a.m. 5:00 p.m., Monday through Thursday and 8:00 a.m. 4:30 p.m. on Friday. It is OCERS' intention to comply with the Americans with Disabilities Act ("ADA") in all respects. If, as an attendee or participant at this meeting, you will need any special assistance beyond that normally provided, OCERS will attempt to accommodate your needs in a reasonable manner. Please contact OCERS via at adminsupport@ocers.org or call as soon as possible prior to the meeting to tell us about your needs and to determine if accommodation is feasible. We would appreciate at least 48 hours notice, if possible. Please also advise us if you plan to attend meetings on a regular basis. 8 P a g e