NV PERS BOARD MEETING
WEDNESDAY October 16, 2019
Meeting in Las Vegas PERS Offices
As is typical for a NV PERS Board meeting, the October 16 meeting opened with an educational presentation, this time focusing on PERS’ Investment Philosophy. Their philosophy consists of maintaining consistent exposure to capital markets and systematically buying assets low and selling them high. PERS’ Investment Officer Steve Edmundson always promotes this strategy and points out that this is what keeps NV PERS consistently performing well amongst its’ peers. Edmundson pointed out to the Board, who met in Las Vegas on a Wednesday rather than the usual 3rd Thursday, that to implement this strategy, they emphasize a simple, low cost structure that relies primarily on intelligent asset allocation and rebalancing. During the hour long presentation he said they keep the total fund risk in line with policy targets which combined with buying low and selling high leads, over time, to a disciplined rebalancing that can produce better risk adjusted returns.
Following the education portion, the regular board business began with another presentation, this time from Boston, MA based AEW, a real estate, research driven company that has been with PERS since 2012. Representatives with AEW explained they are a company doing $76 Billion around the globe and since joining the PERS investment portfolio the properties they manage for PERS have yielded returns between 13-30%. But at the conclusion of their report, they noted that these returns cannot continue the way they have the last seven years…suggesting the returns for the coming 4 years or so are more likely to be around 5.5-6%. But they reminded the Board that they’ve had good successes with the 14 properties acquired with a $663 million gross value and the 11 properties sold with a $512.4 million gross value.
Under other agenda business, the Board heard a report on the huge Pension Administration System…which was budgeted over several years to complete. The project is in the RFP (Request for Proposal) process now through October 24 to be followed by an on-site visit to the Carson City offices for the assessment process scheduled November 12-November 21. Proposals are expected to be considered by Staff by December 27, with a decision coming from the Board during their February 20, 2020 meeting.
There were only two members from the public at the Las Vegas meeting, Terri Laird and RPEN’s new State President Ruth Kilmer.
The board’s next meeting will be back in Carson City November 21, with their December meeting scheduled for December 12, also in Carson City.
Submitted by Terri Laird, Executive Director