PSERS shows strong performance in alternatives

The Pennsylvania Public School Employees’ Retirement System (PSERS) publicised its 2005 investment performance, which was buttressed by strong growth in its alternatives portfolio.

The Pennsylvania Public School Employees’ Retirement System (PSERS) made public its investment returns for the full-year 2005, and the pension’s activity in alternative assets continues to shine.

According to a statement, PSERS’ allocation to alternatives logged gains of 8.5 percent for the fourth quarter, and surged a robust 27.3 percent for the one-year period ending December 31, 2005.

PSERS, which stands as the 14th largest public pension fund in the US, manages roughly $54.8 billion (€46 billion) for current and retired public school employees. The pension allocates roughly 9.4 percent of its total capital under management to the alternatives space. Private equity, which is included in that sum, makes up 6.6 percent of the total portfolio, with the balance of the alternatives allocation coming from investments dedicated to private debt and venture capital.

The pension holds limited partner positions in funds managed by Bear Stearns Merchant Banking, Leonard Green, KRG Capital, LLR Partners, Texas Pacific Group, Sterling Capital Partners and Platinum Equity, among others.

Alan Van Noord, the chief investment officer of the pension plan, credited PSERS’ investments in alternatives for the strong performance, and also cited its exposure to real estate and international equities.