Ohio Public Employees Retirement System, Columbus, doubled its allocations to its two hedge fund-of-funds managers, Crestline Investors and Pacific Alternative Asset Management, which now will run $50 million each.
The board of the $77.6 billion fund also heard presentations on the effects of a state House bill that would require public funds in the state to divest from holdings in public and private foreign corporations doing business in Iran. Michele Kowalik, a spokeswoman for OPERS, said the bill would cost the fund $244 million a year in lower investment returns.
A memo prepared by Tom Sherman, government relations officer for OPERS, explained the fund opposes the bill because of its effect on investments. While no one at OPERS questions that the bill is well intentioned, state law clearly provides that the OPERS board and staff are under a fiduciary responsibility to act in the exclusive best interest of our members and our duty of loyalty is to our members. Mr. Sherman prepared his remarks for the House Financial Institutions, Real Estate and Securities Committee, but his testimony was deferred.