North Carolina Local Government Investment Association Conference

Slides:



Advertisements
Similar presentations
Hedge fund flows on pace to nearly double 2012
Advertisements

PFM Asset Management LLC 222 North LaSalle Suite 910 Chicago, IL Annual Investment Portfolio Review 2012 Fiscal Year.
Oklahoma’s 529 College Savings Plan (OCSP). The Cost of College Use our College Planner Mobile App to learn more. Based on four years of average tuition.
CLIENT INVESTMENT UPDATE Superannuation Products Appendix 31 March 2015.
 Information about the investment products contained in this presentation is solely for informational purposes and does not constitute a specific recommendation.
The search for income in a low interest rate world J.P. Morgan Investment Academy Series Accessible investment education from a trusted source FOR INSTITUTIONAL.
ARIZONA EODCRS Plan Information
Exploring Complementary Investment Opportunities: Real Estate Investment Trusts 1.
New Perspectives on Asset Class Investing © 2015 LWI Financial Inc. All rights reserved. LWI Financial Inc. (“Loring Ward”) is an investment advisor registered.
© 2007 Northern Trust Corporation northerntrust.com The Northern Experience A C C E S S. E X P E R T I S E. S E R V I C E. Greg Yaeger Senior Vice President.
FOR INSTITUTIONAL USE ONLY NOT FOR PUBLIC DISTRIBUTION An introduction to the capital markets J.P. Morgan Investment Academy.
Power Income Portfolio For more information call:
New Clerk Academy Key West, Florida. OVERVIEW ROLE OF THE CLERK IN FINANCIAL MANAGEMENT.
6225 Lusk Boulevard | San Diego, CA | Phone | Fax | Estimating Future Investment Earnings Today Martin.
For Dealer Use Only. 2 Key Features Tactical Asset Allocation Benefits of Indexing, Convenience of ETFs Experienced Portfolio Management Low Cost, Managed.
CHAPTER 20 Investment Companies. Copyright© 2003 John Wiley and Sons, Inc. Investment Funds Purchase direct, long term, capital market securities and.
The 7Twelve ® Portfolio Craig L. Israelsen, Ph.D
EO /11 | ‹#› Not FDIC Insured May Lose Value No Bank Guarantee EO /11 | 1.
The Montgomery Institute Investment Proposal December 2013.
For Dealer Use Only. 2 Key Features Tactical Asset Allocation Benefits of Indexing, Convenience of ETFs Experienced Portfolio Management Low Cost, Managed.
Your Journey Toward Retirement. 2 We are a coordinated team of trusted, experienced professionals working toward your success!
City of Hallandale Beach DB Plan Update November 17, 2014.
The Episcopal Church Foundation As of September 30, /30 Equities to Fixed Income Standard and Socially Screened Endowment Management Solutions Following.
Covered Employer Training Program Introduction to the Retirement Systems FY 2016.
1 California Employers’ Retiree Benefit Trust Eastern Municipal Water District Annual Update August 19, 2015.
Covered employer training program Introduction to the Retirement Systems FY 2017.
Chapter Fourteen Investment Banking, Insurance, and Other Sources of Fee Income.
Copyright © 2017, 2014, 2011 Pearson Education, Inc. All Rights Reserved Personal Finance SIXTH EDITION Chapter 18 Asset Allocation.
ALTERNATIVE Calamos Market Neutral Income and Convertible Funds versus Strategic Income Funds Selection based on funds with Strategic Income/Risk.
Strategies for Fixed Income in the Current Environment
MEMBERS Horizon – The Value of Risk Control
Mutual funds (see Ch. 16 Hirschey and Nofsinger)
Presented by StanCorp Equities, Inc., member FINRA
Changes to emerging markets strategy in MLC’s Inflation Plus portfolios March 2017 This material is not for circulation to retail investors.
Office of Financial Management
Presented by StanCorp Equities, Inc., member FINRA
‘Diversified Growth Funds’ have become the go-to strategy
Annual Investment Report Presentation to City Council
The Third Quarter in Review
Chapter 18 Asset Allocation
Chapter 3 Jones, Investments: Analysis and Management
Chapter 19 Asset Allocation.
Historical Comparisons
Date Target Funds Simplified one fund retirement approach
22 Investors and the Investment Process Bodie, Kane, and Marcus
NestEggs Balanced Portfolio Vanguard LifeStrategy Moderate
2017 Annual Market Review.
Timeline of Major Political and Economic Events
Facing Retirement Risks
California Employers’ Retiree Benefit Trust
Fixed Income performance results are not reflective of a stand-alone, dedicated fixed income investment strategy. Performance is that of the fixed income.
Understanding your retirement account statement
22 Investors and the Investment Process Bodie, Kane, and Marcus
The Banking Sector in Turkey
2018 Annual Market Review.
2017 Annual Market Review.
De-risking in a Low and Rising Interest Rate Environment
Cambria Armor Dividend Strategy Cambria Armor Growth Strategy
Global diversified ETF fund
Investing in Mutual Funds, Exchange traded funds, and Real Estate
2018 Annual Market Review.
2018 Annual Market Review.
2018 Annual Market Review.
Beyond Investment Illusions
Current Allocations**
Individual Pension Plans
Financial Markets Update
Core Portfolio Series KEY PORTFOLIO ATTRIBUTES INVESTMENT APPROACH
For broker and sponsor use only in the Emerging Markets Division.
Presentation transcript:

North Carolina Local Government Investment Association Conference OPEB Funding Options Kevin SigRist, NC Department of State Treasurer - Investment Management Division North Carolina Local Government Investment Association Conference Thursday July 20, 2017

Overview of NCDST - Investment Management Division As of June 2017, oversees more than $122 billion in assets $94 billion for North Carolina Retirement Systems (NCRS) $29 billion for other programs Internal and external investment management $48 billion managed internally in fixed income $75 billion managed through external investment managers and partnerships across equities, real estate, private equity, opportunistic fixed income, inflation sensitive, and multi- strategies 40 member team complemented/supplemented by consultants Low cost provision of conservative institutional-quality investment services

Ancillary Governmental Participant Investment Program (AGPIP) NCDST maintains AGPIP to invest non-retirement monies for governmental entities. NCDST has established several investment pools (or “Funds”) to help ensure these investments benefit from low cost professional management. NCDST internally manages The Short Term Investment Fund (“STIF”) BlackRock manages a Bond Index Fund (“BIF”) and an Equity Index Fund (“EIF”)

Potentially Eligible Fund/Entities The specific funds listed in N.C.G.S. 147-69.2(a), and Unless a specific statute indicates otherwise: Any official, board or commission of the State of North Carolina Any local government of the State of North Carolina Any other public authority of the State of North Carolina Any school administrative unit, local ABC board, or community college of the State of North Carolina

Short-term Investment Fund (“STIF”) The STIF invests in highly liquid money market instruments and short to intermediate Treasuries, Agencies, and AAA-rated corporate obligations pursuant to N.C.G.S. 147-69.1(c)(1)-(10). The STIF is designed to preserve capital, provide liquidity, and produce a return consistent with the iMoneyNet First Tier Institutional Money Market Fund Net Index benchmark. Fund fees and charges have historically been approximately 3 basis points annualized (i.e., 3/10000). Administrative, custody, performance measurement, and reporting charges will be applied to STIF and will not be itemized at the participant level.

Bond Index Fund (“BIF”) The BIF invests in high quality debt securities eligible under N.C.G.S. 147-69.2 (b)(1)-(6). The BIF maintains a low cost approach to investment grade fixed income assets through a passive strategy. The BIF is designed to produce a return consistent with the Barclay’s U.S. Aggregate Bond Index benchmark. Investment Management fees are 2.5 basis points up to $750 million total fund assets and 2 basis points once total fund assets are above $750 million. Administrative, custody, performance measurement, reporting and other charges will be applied to BIF and will not be itemized at the participant level. NCDST has the authority to assess a separate administrative fee of up to 15 bps to cover its reasonable costs.

Bloomberg Barclays U.S. Aggregate Bond Index Total Return (%) 1 Month 3 Month YTD 1 Year 3 Year 5 Year 7 Year 10 Year 15 Year Bloomberg Barclays U.S. Aggregate Bond Index (0.10) 1.45 2.27 (0.31) 2.48 2.21 3.19 4.48 Note: All data is as of June 30, 2017 and is for illustrative purposes only. Data is not specific to BIF. Historical index returns do not reflect the impact of fees nor should they be relied on to predict future performance.

Equity Index Fund (“EIF”) The EIF invests primarily in US and non-US equity securities eligible under N.C.G.S. 147-69.2 (b)(8) with the objective of closely approximating the capitalization weighted total return of the markets for global publicly traded equity securities while maintaining a low cost approach. The EIF is designed to produce a return consistent with the Morgan Stanley Capital International All Country World Index benchmark. Investment Management fees are 2 basis points. Administrative, custody, performance measurement, reporting and other charges will be applied to BIF and will not be itemized at the participant level. NCDST has the authority to assess a separate administrative fee of up to 15 bps to cover its reasonable costs.

MSCI All Cap World Index Total Return (%) 1 Month 3 Month YTD 1 Year 3 Year 5 Year 7 Year 10 Year 15 Year MSCI All Country World Net Index 0.45 4.27 11.48 18.78 4.82 10.54 10.48 3.71 7.31 Note: All data is as of June 30, 2017 and is for illustrative purposes only. Data is not specific to EIF. Historical index returns do not reflect the impact of fees nor should they be relied on to predict future performance.

Important Considerations Liquidity & Risks: BIF and EIF are less liquid than short-term investments such as STIF. Such liquidity constraints should be taken into consideration when making allocations in the program. BIF and EIF may potentially offer a higher rate of return than traditional short-term portfolios but you must understand that to achieve such performance the BIF and EIF may experience periods of declines in market value and/or principal loss and there is no guarantee of performance. Asset Allocation: When Participants enroll they designate the allocation of monies across the investment Funds. Participants have the option to allocate across a combination of all three funds and the sole responsibility to periodically rebalance/reallocate. Please refer to the AGPIP Enrollment Package for important risk disclosures

Deposits and Withdrawals Once per month, 5 business days prior to the end of the month for the following month Submit Appendix B: Deposit & Withdrawal Form to AGPIP@nctreasurer.com and fill out applicable link below State Agencies initiate deposits and withdrawals via CMCS Initiate Deposit: https://www.nctreasurer.com/fod/Pages/Wire- In-Without-CMCS.aspx (Local Government Only) For withdrawals: https://www.nctreasurer.com/fod/Banking%20Forms/USD- Wire.pdf (Local Government Only)

Enrollment Process Meet Eligibility Criteria provided in the “Terms of Participation” Submit Notice of Intent via email to AGPIP@nctreasurer.com Execute Enrollment Package Acknowledgement Page Submit Irrevocable Trust documentation for Local Government Other Post- Employment Benefits (OPEB) and/or Law Enforcement Officer Special Separation Allowance (LEOSSA) Trusts Execute Deposit Agreement & Initial Allocation Form Complete the Deposit Form Establish Short Term Investment Fund (STIF) Account Execute Signature Card for STIF Account Execute W9 Complete Tax Questionnaire-EIF Only

Contact Information Questions: AGPIP@nctreasurer.com Forms and background information can be found at www.nctreasurer.com by clicking: “State and Local Government Finance” “Ancillary Governmental Participant Investment Program (AGPIP)” Forms and background information can also be found by typing the following directly into your browser: https://www.nctreasurer.com/slg/lfm/forms- instructions/Pages/AGPIP.aspx

Important Information Related to AGPIP The furnishing of the information in these slides is not intended to constitute investment advice offering an investment product. NCDST is undertaking their statutory responsibility set out in NCGS 147-69.3. There is no agreement or understanding between NCDST and any Fund participant under which the latter receives advice from NCDST concerning investments which are to be used as a primary basis for the participant’s investment decisions relating to the Funds. The participant acknowledges that: (1) the Funds have liquidity limitations, volatility of returns, and risk of loss, including the potential for loss of the principal invested; (2) that NCDST is not providing investment advice to the participant; (3) that investing in the Funds is only suitable for participants who are willing to bear the economic risks of the investment; (4) that the participant will carefully review and consider all potential risks and costs before enrolling and investing. Please refer to the AGPIP Enrollment Package for important risk disclosures