Nominated For Top Public Pension Plan in the U.S.
February 12, 2005
Nominations are based on investment performance, innovation, and notable asset allocations made during the year. Large public plans are those plans managing at least $5 billion. The Alaska State Pension Investment Board manages about $15 billion in defined benefit and defined contribution plans. Rates of return on the two largest components, the $8.4 billion Public Employees' Retirement System and the $4 billion Teachers' Retirement System for the most recently ended fiscal year were 15.08% and 15.09% respectively.
The Money Management Letter cited absolute return strategies adopted by the Alaska State Pension Investment Board, and noted the recent move into agricultural land. Also discussed is a move to real estate investment trusts that will be managed in-house, thereby avoiding the fees normally paid by institutional investors in this asset category.
Board Chair Gail Schubert said, "What is significant about this recognition is that it draws attention to the consistent results achieved over the long term. The recent investment allocations are important but rates of return that regularly exceed benchmarks are the bigger story for the Alaska State Pension Investment Board." The board consists of four trustees appointed by the governor and four trustees elected by plan beneficiaries. Board meetings are open to the public.
Since its inception, the Alaska
State Pension Investment Board has delegated day-to-day investment
responsibilities, including governance and compliance, to the
Treasury Division of the Alaska Department of Revenue. The Treasury
Division also manages 27 other funds including the General Fund
and the Constitutional Budget Reserve Fund. Most fixed income
investments are managed in-house, with State Investment Officers
buying and selling securities beginning at 5:45 a.m. each morning.
Many other types of investments are made by money management
firms selected by the board, with governance and compliance provided
by the Treasury Division.
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