PCA will act as a secondary consultant complementing OCERS’ general consultant, Meketa Investment Group, and work with officials at the $12.9 billion pension fund to revise its asset allocation and its portfolio structure, among other duties.
Starting at the board’s mid-September offsite strategic planning meeting, pension fund officials plan to study whether to replace hedge funds with a lower-cost investment alternative as well as whether to add an opportunistic investment asset category.
The pension fund issued an RFP for the search on July 5. Other finalists were BlackRock Solutions and Verus Advisory.
“We are all very excited to begin working with PCA through this innovative engagement structure, which combines macro-level risk advisory services with valuable ‘second opinion’ and ‘fresh ideas from outside the box,’” said Girard Miller, OCERS’ chief investment officer, in a written statement.
Once the transition to PCA is completed, OCERS will terminate BlackRock Solutions as its risk management services provider, Mr. Miller said.