Alameda County Employees' Retirement Association, Oakland, Calif., hired Capital Institutional Services as the $5 billion fund's first directed brokerage administration and commission-recapture service provider, Alameda CEO Chuck Conrad confirmed.
The board of directors wants to ensure that the system achieves best execution. "Many funds have directed brokerage plans, but we found that there is no follow-up, so you have no idea how cost-effective it is," he said. ACERA selected CAPIS because it will be able to monitor and report on its success in distributing percentages of its trades through the expanded brokerage network. The fund will receive quarterly reports and a comprehensive study after one year. Strategic Investment Services assisted.
