2009 Pension Bridge Annual

Breakfast
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Chairman’s Opening Remarks

Dory Wiley, CPA, CFA, CVA, Trustee, Chairman of the Investment Committee, Teacher Retirement System of Texas

Keynote Speaker

"Overcoming Our Greatest Risk"

Michael Beasley, Managing Director, Strategic Investment Solutions, Inc, (SIS)

The Recession and Expectations for the Future of the U.S. Economy:

Well known for his accuracy on the US Markets through various television, online and print news sources, Mr. Boockvar will share his insights about the current and future state of the economy.  He will cover components such as the equity and real estate markets, consumer spending, unemployment, inflation/deflation, The Fed and US Treasury policies, and more.

Speaker:
Peter Boockvar,Equity Strategist, Miller Tabak + Co., LLC

Fiduciary Responsibility

• Core Standards of Conduct
• The importance of Ethics and Trust
• Components of Fiduciary Duty
• Delegation of Duty
• Identifying and Avoiding Conflicts of Interest
• Growing role and expectations of Trustees
• Duty to Diversify, Manage Risk and Safeguard against today’s Challenges
• Impact of recent Regulations
• Rise in Pension Lawsuits
• New Programs/Approaches to elevate Fiduciary Standards and ensure Fiduciary Excellence
• Does the Role change during Turbulent Times?

Moderator:
Peter Preovolos, Trustee, San Diego City Employees’ Retirement System

Speakers:
Alan Maguire, Board of Investment, Arizona State Treasury
Robert L. Greene, Trustee, Virginia Retirement System

Manager Selection and Evaluation

Selection:

• How Alternative Manager Selection differs vs. Traditional Manager Selection
• Does Quantitative & Qualitative Analysis work?
• Aligning the Interests of your Money Managers with your Own
• Measuring Returns and Expectations against a suitable Benchmark
• Importance of Risk Management when selecting Hedge Fund Managers
• Balancing Costs and Market Risks
• Taking Fees into consideration
• Working with your Consultant in the Selection Process
• Finals Presentation Advice – common mistakes
  

Evaluation:

• Defining and meeting Expectations
• Judging your Manager’s Performance against an appropriate Benchmark, their Peers, and the Market
• Strategic and Structural Reviews
• What are your Criteria for placing a Manager on Watch?
• Grounds for Termination
• Consultant’s role and Expectations – how can they be proactive in the future?

Moderator:
Carolyn Roberts, Senior Investment Consultant, Milliman, Inc.

Speakers:
Michael J. LeVar, CFA, Director of Hedge Funds, Hammond Associates
Luke Howe, President, Executive Director, Park Employees’ Annuity & Benefit Fund of Chicago

Refreshment Break
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Distressed Investing

• Overview of the Current Economic Conditions – Defaults, Foreclosures, Bankruptcies, Credit Quality, Liquidity, Derivatives and CLOs
• Which sectors are the most vulnerable and how can Pension Plans take advantage of the Opportunities?
• Will Hedge Funds, Private Equity Firms and Sovereign Wealth Funds continue bailing out Companies?
• State of the Leveraged Buyout Market
• What opportunities exist today in Distressed Real Estate?
• Current Pitfalls in the Economy impacting Distressed Investing
• Is there better value in Debt, Equity or Entity Investments?
• How do we avoid a repeat of the last 5 years?
• International Distressed Debt Opportunities – making the case for Asia
• Event Driven Opportunities
• Activist Investing
• Overview of the Risks associated with Distressed – leverage, risk of losing a substantial portion or all of investment, illiquidity, lock-ups/lengthy redemption terms, no requirement of periodic pricing to investors, etc. 

Moderator:
Robbie Robertson, President Emeritus, Professional Firefighters of Georgia,Vice-Chairman, Dekalb County Pension Board

Speakers:
Stanley L. Iezman, President, CEO, American Realty Advisors
Eric Epstein, Partner, Davidson Kempner Capital Management LLC
Keith H. Black, CFA, CAIA, Associate, Ennis Knupp + Associates

Credit Strategies and Lending Opportunities

• State of the current Credit Market – how did we get to this point?
• What Credit Opportunities are available as a result of the Liquidity Crisis?
• Buying Opportunities within the CDO wreckage
• How can Pension Plans take advantage of these Opportunities and profit from it?
• Taking advantage of “Special Situations”
• Are Credit Funds a fad or can you profit from them for several years to come?
• How should Pension Funds go about analyzing and selecting from the various Credit Funds and Direct
  Lending Strategies?
• Separating “Distressed” from Credit Strategies associated with Healthy Entities

Moderator:
Paul Russ, Board Member, Investment Committee Chairman, San Bernardino County Employees’ Retirement Association

Speakers:
Scott Klein, Managing Partner, Beach Point Capital Management, LLC
Ryan Krauch, Principal, Mesa West Capital
Larry Holzenthaler, Fixed Income Analyst, Symphony Asset Management
Dory Wiley, CPA, CFA, CVA, Trustee, Chairman of the Investment Committee, Teacher Retirement System of Texas

Lunch
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Risk Management - Liability Driven Investment, (LDI)

• Managing and Controlling Risk – What are the Sources of Pension Fund Risk?
• What is LDI?
• Making the Case for Liability-Driven Investing
• Understanding “Mark to Market” and "FAS 157"
• Reducing Funding Ratio Volatility
• Risk/Return – Does embracing LDI mean giving up much needed Returns?
• Are Plan Liabilities the only appropriate Benchmark?
• Does LDI apply to Public Funds?

Moderator:
Art Hall, Trustee, San Antonio Fire & Police Pension Fund

Speakers:
Satish Swamy, CFA, Senior Portfolio Manager, Regents of the University of California
Timothy R. Barron, President & CEO, Rogerscasey

Fixed Income Panel

• Assessing the Current Environment: U.S. Dollar, credit market risk, yield curve, interest rates, emerging markets, etc.
• Portfolio Construction, Risk Management and the Importance of Diversification
• Due Diligence on Managers: how to evaluate Alternative Managers
• Strategies for the Current Economic Environment
• Ways to enhance Fixed Income Returns and capture Alpha
• Structured Products and Derivatives

Moderator:
Pete Morin, Chairman, City of Austin Police Retirement System

Speakers:
David MacEwen, Chief Investment Officer, Fixed Income, American Century Investments
Allan Schweitzer, Chief Investment Officer, Senior Portfolio Manager, Post Advisory Group, LLC

Emerging Markets – Overseas Opportunities

• Choosing an Emerging Markets Fund and Manager
• US Trade Imbalances vs. Trade Surpluses and Excess Reserves of Emerging Markets
• US Demographics vs. Emerging Markets Demographics – why Overseas Markets are Statistically Favorable
• BRIC Economies – the Shift of Economic Powers
• Breaking down the Prospects by Country – Identifying the greatest Opportunities
• Making the case for Frontier Markets
• Barriers to consider
• Emerging Market Debt, Commodities and Bonds and Real Estate
• Making the case for Diversifying into Global Equities
• Global Equities Outlook and the Effects of a Global Recession
• Should your Global Equities Allocation be by Geographic Region or Sector, (ie Financials, Commodities)

Moderator:
Carl Gilmore, President, Oakland Municipal Employees’ Retirement System

Speakers:
Andy Iseri, CFA, Investment Consultant, Callan Associates
Kamila Kowalke, Director, Institutional Markets, Dow Jones Indexes
John Boich, CFA, Portfolio Manager, Security Global Investors, LLC

Frontier Markets

• Is Frontier Markets the next Emerging Markets?
• Increase of Assets in Frontier Markets
• Diversification - Low Correlation to Developed Markets
• Effects of a Global Recession on Frontier Markets
• The up-and-coming Middle East
• Prospects for Africa
• Sectors to consider
• Risks – Political, Currency, Corruption, Limited Research, Low Liquidity, Access, etc.

Speaker:
Carmen Campollo, Senior Vice President, Relationship Management, FTSE Americas

Refreshment Break
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Infrastructure Investing Panel

• Growth Rate as an Asset Class and Infrastructure Demand - where are they projected to be for the Future?
• Obama’s Infrastructure Plans and how it affects the industry as a whole
• How can Infrastructure fit into your Asset Allocation - is it now its own Asset Class?
• Benchmarking Returns and comparing against other Asset Classes
• Long Term Revenue Streams and Inflation Protection
• Implementation Options – Direct, Fund or Listed Exchange
• What should you look for in an Infrastructure Manager?
• Risk/Return Profiling – Which Infrastructure Assets are classified as High Risk and Low Risk? What is the approximate Return Potential for each?
• In which Sectors will investors find the best Opportunities and Returns?
• Benefits and Challenges of International Infrastructure
• Investing in Energy Infrastructure
• MLPs – Characteristics of successful MLPs, Track Record and Risks
• Infrastructure Risks

Moderator:
Glenn Ezard, Senior Consultant, Segal Advisors

Speakers:
George Diehr, Chairman of the Investment Committee, Vice President, Board of Administration, CalPERS
Brian Clarke, Senior Managing Director, Macquarie Capital (USA) Inc, Private Placement Group
Warren Spitz, Portfolio Manager, RiverSource Investments, LLC
Paul Russ, Board Member, Investment Committee Chairman, San Bernardino County Employees’ Retirement Association

Emerging Managers Panel

• Evolution of Emerging Manager Programs
• Strategies for Implementing an Emerging Managers Program
• Research Statistics and Results on Emerging Managers
• Exploiting Market Inefficiencies Utilizing Emerging Managers 
• Due Diligence and Key Points of Analysis for Selecting Emerging Managers
• Comparing the Attributes of Prospective Emerging Managers
• Benefits and Opportunities offered by Investing in Emerging Managers
• How Emerging Managers Diversify and Balance Asset Allocation to enhance Fund Performance
• Risk Management and Monitoring of Emerging Managers

Moderator:
Thurman Zollicoffer, Trustee, State Retirement & Pension System of Maryland & Baltimore Retirement Systems

Speakers:
Jonathan Choslovsky, Partner, Senior Strategy Analyst, Albourne America LLC
Kelly M. Williams, Managing Director, Co-Head, Credit Suisse Customized Fund Investment Group
Clark Hodges, Executive Business Development, Hodges Capital Management

Cocktail Reception

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Cocktail Reception Concludes

Keynote Speaker

Evolution of the Investment Process and the Importance of Diversifying Through Alternatives

Richard Charlton, Chairman, CEO, NEPC LLC

130/30 Panel

• 130/30 Explained - back to the basics
• Why are 130/30 Strategies appealing?
• What have we learned about 130/30 Strategies and its results during the market downturn?
• The Future of 130/30 - Will it ever live up to the hype and regain traction?
• Key to Survival – Manager Selection and Skill
• Quantitative vs. Fundamental
• Long Short Hedge Fund vs. Traditional Manager
• Performance Analysis and Benchmarking
• Common Misconceptions
• What does a Properly Implemented Strategy look like?

Moderator:
Jerry Davis, Chairman, Board of Trustees, City of New Orleans Employees Retirement System

Speakers:
Steven Sapra, CFA, Portfolio Manager, Analytic Investors, LLC
Bryan R. Decker, Managing Director, Chief Investment Strategist, Evaluation Associates

Hedge Fund Panel

• Differentiating the Strategies - which one best meets the Needs of Pension Funds?
• What do Consultants look for when Evaluating Managers?
• Fund of Funds Investing vs. Direct
• Picking the right Hedge Fund or Fund of Funds – Due Diligence and Manager Selection
• Monitoring Risk
• Risk Management as it applies to Valuation – Risk of falsely inflated asset values
• Liquidity, Volatility and Transparency
• Deleveraging of Hedge Funds due to Market Conditions
• Pitfalls and Red Flags
• What are the Risks we’ve seen with Quant Hedge Funds and can we avoid these issues?
• How has the Quant Sector been reshaped or changed as a result of the events that have taken place?
• How to Evolve Funds in a changing environment to Sustain Performance
• Where are the Opportunities today and which new Trends should be considered?
• Emerging Markets
• SEC Disclosure on Short Positions and it’s effects on your Business
• SEC Short Selling "Witch Hunt" – do you expect additional bans if the market drops further and what
  effects will it have on the industry?

Moderator: 
Geremy Connor,Director, Portfolio Manager, Attalus Capital, LP

Speakers:
Kurt Silberstein, CFA, CAIA,Senior Portfolio Manager, Absolute Return Strategies & Externally Managed Equity, CalPERS
Keith H. Black, CFA, CAIA, Associate, Ennis Knupp + Associates
Larry Pokora, Senior Vice President – Investor Relations, Paulson & Co. Inc.
Matt Glaser, Director of Alternative Strategies, Turner Investment Partners

Mitigating Operational & Fraud Risk – Post Madoff Solutions

• Independent Third Party Copied on all Trades
• Third Party Maintains Independent Ledger
• Daily Independent Reconciliation of Gains & Losses with Custodians and Prime Brokers
• Independent Valuations
• Importance of Transfer Agency – monitoring the flow of assets

Speaker:
Alison Gregory, Head of Enterprise Risk Management, GlobeOp Financial Services

Refreshment Break
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Currency Alpha and Currency Overlay Panel

• Characteristics of Currency Markets
• Currency’s role in a Portfolio Diversification, Risk Reduction, Hedging, Alpha
• Returns – Uncorrelated with Equities and Fixed Income 
• Alpha: The currency strategies in the market carry, momentum, fundamental, volatility
• Can Currencies be Forecasted?
• Goals of a Currency Program
• Benchmarks that may be utilized in Currency Specific Returns
• Practical, Operational and Cash-Flow Risk Issues

Moderator:
Larry Schimmel, Esq, Trustee, New York City Employees’ Retirement System, Director of Pension Policy, Deputy General Counsel, Office of the Public Advocate, City of New York

Speakers:
Ulf Lindahl, Chief Investment Officer, Senior Vice President, A.G. Bisset & Company, Inc.
Eric Busay, CFA, Portfolio Manager, Currency Overlay and International Fixed Income, CalPERS

Enhanced Indexation/Portable Alpha

• How does Portable Alpha work – separating Alpha from Beta
• Advantages of a Portable Alpha Program
• Implementing a Portable Alpha Strategy/Program
• What are the different approaches to Enhanced Indexing?
• Considerations related to the Alpha Strategy
• Sources of Uncorrelated Alpha Sources of Beta
• Active Management as Portable Alpha
• Risks with Portable Alpha Structures
  
• What are the Key Drivers of Success?

Speaker:
Dr. Robert Brown, PhD, CFA, Managing Director of Investment Strategy and Research, Benchmark Plus

Managed Futures

Sponsored By:

• Lessons from 2008
• Asset Allocation Clarity
• True Alternatives to be more important than ever post 2008?
• Performance Chasing – poor substitute for a robust Asset Allocation Strategy
• Criteria for Allocating to Alternatives
• Performance Traits – Absolute Return Orientation and Diversification
• Qualitative Traits – Liquidity, Transparency and Regulation
• The Case for an enduring Allocation to Managed Futures

Speaker:
Patrick Welton, CEO, Welton Investment Corporation

Lunch
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Real Estate Panel

• Current State of the Real Estate Market
• Determining which Strategies work best for Public Funds
• Real Estate Market Cycle Research
• Current state of the REIT Market – Domestic and Global
• Making the case for Global Real Estate – Opportunities, Investment Trends and Capital Flows
• What Strategies do you see as the biggest Risks and the biggest Rewards/Relative Value for the Future?
• Opportunities in Distressed Real Estate
• Making the case for Real Estate as a Future Inflation Hedge
• The Secondary Market - understanding the need for Liquidity

Moderator:
Rene Nunez, Trustee, Chairman, Texas Permanent School Fund

Speakers:
Lowell Bolken, CFA, Associate Portfolio Manager, Real Estate Securities, Advantus Capital Management
Raymond Harbert, Chairman, CEO, Harbert Management Corporation
Scott M. Landress, Managing Principal and CEO, Liquid Realty Partners
Scott Smith, Director of Real Estate Investments, New Mexico State Investment Council

Refreshment Break
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Private Equity Panel

• How should your Fund evaluate the various Private Equity Investing Opportunities?
• Credit Market Disruptions – What have been the Effects on Buyouts and the returns?  What can be expected for the future?
• Fund Raising Trends and Outlook
• Emerging Markets – What Countries offer the best Opportunities?
• What Sub-Sectors of Private Equity will the money flow to as a result of the Credit Crisis?
• What Opportunities will there be in Distressed?
• Fund of Funds Performance vs. Direct
• Are Fund of Funds still gaining momentum?  Getting cluttered?
• Selecting a Fund of Funds Manager: Due Diligence, Key Criteria, what are the Points of Distinction?
• How do you decide which deals to focus on?
• Venture Outlook and Trends
• Effects of Sovereign Wealth Funds on Private Equity

Moderator:
Arthur Hidalgo, Board Member, Chair of Private Markets Committee, Orange County Employees Retirement System

Speakers:
Lance Mansbridge, Managing Director, Bay Hills Capital
Gabrielle Zadra, Managing Director, Cliffwater, LLC
Michael Forestner, Director of Private Markets, Hammond Associates
Michael J. Moy, Managing Director, Pension Consulting Alliance, (PCA)
Robert Finkel, Managing Partner, Prism Capital

Private Equity Secondaries Market & The Need for Liquidity

• Secondaries Market Explained
• Pension Plan Asset Allocation shifts as a result of the Equity Market downturn and the Need to Rebalance 
• Reasons why Pension Plans are turning to the Secondaries Market
• Relieving the Unfunded Investment Period Commitment and Liability
• Joint Ventures – an Alternative to selling a Private Equity Stake at a Discount
• Challenges to the Secondaries Market – Valuation/Pricing Risk, Volatility, Timing, etc.

Moderator:
James Gamett, Managing Director & Head of Secondary Investments, StepStone Group LLC

Speakers:
Joseph Marks, Principal, Coller Capital, Inc.
Ian Charles, Principal, Landmark Partners
Kevin Tatlow, CAIA, Senior Consultant, NEPC, LLC

CIO Roundtable

Fiscal Health of Pension Plans

• Are Asset Allocation changes for your Plan required due to Market Environment?
• What Steps have you taken to ensure Diversification?
• Risk of Underfunding and Higher Contribution Rates as a result of weak Equity Markets
• Do you expect Pension Funds across the country to reach an 8% return going forward or further underperformance?
  

Economy and Your Fund

• Has your Fund explored ways to protect against the Inflationary period through mid 2008, the current Deflationary Environment, and the Inflation to take place in the Future?
• Have you explored Distressed Opportunities and other ways to profit from the Credit Crisis?
• How adaptable/flexible is your Fund in adjusting its Asset Allocation in order to take advantage of Market
  Dislocations and Conditions?
• How will the Global Recession affect your Plan?
  

Strategies

• Have your views on Quantitative Strategies changed since August 2007?
• Have your views on particular strategies changed in the past year, 130/30? Portable Alpha?
• Are you increasing or decreasing your Equity exposure?
• How are you handling Capital Calls?  Have you tapped the Secondary Market?
• Expectations for the Future of the Hedge Fund Industry
• Future Trends and Strategies that you expect to outperform

Moderator:
Thomas Flanigan, Board Member, Orange County Employees Retirement System,  Founding & Former Chief Investment Officer, CalSTRS

Speakers:
Cary Hally, Chief Investment Officer, Contra Costa County Employees’ Retirement Association
William D. Lee, CFA, Chief Investment Officer, VP, Pensions & Foundation Investments, Kaiser Permanente
Gary B. Bland, Chief Investment Officer, New Mexico State Investment Council
Shanta Chary, Chief Investment Officer, Orange County Employees Retirement System
Jeffrey States, Chief Investment Officer, Sacramento County Employees’ Retirement System
Carmen Racy-Choy, FSA, FCIA, MBA, Chief Investment Officer, San Jose Federated City Employees Retirement System and San Jose Police & Fire Department Retirement Plan

Cocktail Reception
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Cocktail Reception Concludes

Breakfast

 

Bus Leaves for Presidio Golf Course

 

Pension Bridge Golf Tournament

Golf Awards Ceremony – Prizes, Open Bar and Lunch