2012 Pension Bridge Annual

Breakfast

Sponsored By:

Opening Remarks

Keynote Speaker

“Investing Post Financial Crisis – Challenges and Opportunities”

Farouki Majeed, CFA, Senior Investment Officer - Asset    Allocation & Risk Management, California Public Employees' Retirement System, (CalPERS)

Keynote Speaker - Macroeconomic View

• How is the Health of the US Consumer? – Savings Rate, Disposable Income, Debt, Homeowner Equity
  
• Unemployment – high for how long and just how bad are the Actual Figures?
  
• Housing Market Outlook
  
• GDP Outlook
  
• Stock Market Outlook – did we put in Long-Term Bottom in 2009 or should we expect a Retest of the Lows?
  
• Length of the average Secular Bear Market
  
• S&P 500 PE Ratio – where are we currently valued and will we reach the Historical Low End of Valuations?
  
• Bank Balance Sheets and Toxic Assets
  
• What is the Outlook for the Dollar and Euro and how might that affect the Stock Market?
  
• European Sovereign Debt Crisis
  
• Inflation Expectations
  
• What Conclusions can be drawn from the Bond Market and where are we headed?
  
• Did we witness a Bond Market Bubble and are we at the End of a 30 Year Bull Market?
  
• Future Municipal Bond Defaults – what can we expect and what are the Implications?
  
• What role has the Fed played in the Markets and how might this play out in the Future?

Speaker:

Peter Schiff, President & Chief Global Strategist, Euro Pacific Capital, Inc.

Risk Management as it applies to Pension Plans, Fiduciaries and the Current Investment Environment

• To what extent has the Financial Crisis changed the way Pension Plans Measure and Manage Risk?
  
• What kinds of Future Risk should US Pension Plans be most wary of?
  
• Integration of Risk Management and Portfolio Modeling Techniques – what are the most effective Asset Allocation Strategies for dealing with Future Financial Challenges?
  
• Valuation and Pricing Risk
  
• The Importance of Monitoring Counterparty Risk being taken by Managers
  
• Transparency Risk
  
• Leverage Risk – what are the Best Approaches to keep these Risks within Acceptable Parameters?
  
• Correlation and Drawdown Risk
  
• Risk Parity – is Leverage the main Downside and do you see it as a Sustainable Approach in Periods of Market Stress?
  
• Developing a Framework for Identifying, Measuring, Monitoring, and Controlling Liquidity Risk in order to meet Future Cash Flow Obligations, (and avoid Shortfall Risk)
  
• Supervision and Legislation of Markets – the Importance of having a Chief Risk Officer and Building In-House Resources (or outsource it), for an overall Risk Management Framework
  
• How has the Role of Fiduciary Responsibility Changed in this new Era of Risk?
  
• How can Fiduciaries embrace Sound Due Diligence Practices while Adapting and Safeguarding against today’s Challenges?
  
• How do you go about Educating a Board on Risk?
  
• How does a Plan’s Size affect the Approach to Pension Risk Management?
  
• What will Risk Management Best Practice look like in the future?

Moderator:

Jeffrey MacLean, President & CEO, Wurts & Associates, Inc.

Speakers:

John Linder, CFA, CPA, Consultant, Principal, Pension Consulting Alliance, Inc., (PCA)

Susan Mangeiro, PhD, CFA, FRM, Risk Management and Valuation Expert, Fiduciary Leadership, LLC

David Storrs, President, CEO & Co-Founder, Alternative Investment Group, LLC

Karyn L. Williams, PhD, Managing Director & Principal, Wilshire Consulting

Refreshment Break

Protecting Portfolios from Periods of Financial Stress – Tail Risk Hedging and Developing Proper/True Portfolio Diversification

(A) Tail Risk Hedging

• Why does it make sense now?
  
• Understanding Tail Risk Frequency and Severity
  
• Macro Risks that can Exacerbate Declines – Globalization of Capital Markets, (leading to a connected marketplace), $600 Trillion Unregulated Derivatives Market, US Dollar decline, etc.
  
• Importance of Understanding where in the Market your Existential Tail Risks come from and how big they could be
  
• Managing Downside Potential – Analysis of your Liquidity and Leverage
  
• What types of Strategies are used to Hedge Portfolios from these Macro Risks?
  
• Should Derivatives Overlay Hedges be Dedicated and Customized?
  
• Is Raising Cash a proper Tail-Risk Strategy?
  
• Pension Plans developing a Contingency Plan – what are the Best Practices to navigate through Stressful Periods?

(B) Developing Proper/True Portfolio Diversification

• Rethinking Diversification to Prevent Portfolio Drawdowns – Correlations tend to Increase during Periods of Market Disturbance showing that Current Diversification Models Fail
  
• How does the Diversification Allocation Framework need Refining?
  
• Goal of Creating True Diversification – a Non-Correlated Portfolio
  
• Types of Alternatives-Based Products that provide a Low Correlation to Traditional Investments with Outsized Returns during periods of Market Stress – Global Macro, Managed Futures, Currency, Mezzanine, Convertible Arbitrage, Dedicated Short-Biased Funds, etc.
  
• Tail Risk Hedging – do you need to Rebalance?
  
• Should the Market suffer another Collapse, would your Pension Plan’s Portfolio Performance be significantly better off due to changes in Asset Allocation and Diversification, or just slightly?

Moderator:

Peter Wilamoski, PhD, Director of Capital Markets Research, Wurts & Associates, Inc.

Speakers:

Scott Chan, CFA, Deputy Chief Investment Officer, Sacramento County Employees' Retirement System

Scott Peng, Partner, Head of Global Portfolio Solutions, SECOR Asset Management
Lance Teitelbaum, Managing Director, US Research and Portfolio Management, FRM Americas LLC

Asset Allocation and Portfolio Construction

• A Trustee’s and Investment Manager’s Perspective on the Investment Challenges faced by Investment Officers and their Staffs – novel points of view to aid in achieving their investment objectives
• Are we asking the right Questions? Questioning the right Practices? Using the right Tools?
• The Asset Allocation Study and Efficient Frontiers – useful tools or sources of suboptimal decision making?
• The Case for Deconstructing the Investment Challenge by beginning with First Principles, Liberating Practitioners from Artificial Constraints
• Practical Tools and Analysis Techniques to aid Investment Officers and their Staffs
  

Speaker:
Patrick Welton, CEO, Welton Investment Corporation

Unfunded Liabilities

• Is the Pension Shortfall worse than stated due to Accounting/Valuation Methodologies?
  
• What sort of recent Actuarial Recommendations/Adjustments are you seeing in terms of the Assumed Rate of Return?
  
• Is Raising the Retirement Age, Reducing Benefits, and Increasing Employee Contributions a Forgone Conclusion?
  
• Are Cuts on Future Hires (and not current workers), enough to save the Weakest Funds?
  
• What can the Money Management Industry do to help these Underfunded Plans?
  
• Do you expect that the Federal Government will get involved in a large scale Bailout? If so, what might they do?
  
• Explain the Argument as to why States should not offer a 401(k) DC Plan as a Solution
• Thoughts on a Hybrid Model with Elements of DB & DC
• What Ideas would you propose in order to Cut a Pension Plan’s Deficit and Close the Gap?
  
• What can Pension Plans do to see the “Writing on the Wall” and be more Proactive going forward to avoid periods of Market Stress?
  
• Will Hedge Funds be the Beneficiaries of Asset Flows due to the Funding Gap?
  
• Do you think Plans will cut more Illiquid Assets to ensure being able to make Benefit Payments?
  
• Should we be focusing more time on Risk Measures like Valuation instead of picking the correct Managers?
  
• Aligning the Interests between Plan Sponsors and Managers
  
• Will the Consultant’s Role change going forward? If so, in what way?
  
• Corporate Pension Buyouts – transferring Assets and Liabilities to an Insurance Company as a De-Risking Strategy. What can we learn from the U.K. Experience and will this trend spread to the U.S.?

Moderator:
Andrew Junkin, CFA, CAIA, Managing Director, Wilshire Consulting

Speakers:
George Diehr, PhD, Vice President, Board of Administration, Vice Chair of Investment Committee, California Public Employees’ Retirement System, (CalPERS)
Allan Emkin, Managing Director, Pension Consulting Alliance, Inc., (PCA)
Brian Guthrie, Executive Director, Teacher Retirement System of Texas

Liability Driven Investment, (LDI)

• Managing and Controlling Sources of Pension Fund Risk
  
• What is LDI and how is it Interpreted in the Market?
  
• What are we seeing now in terms of LDI Related Trends?
  
• Does LDI make sense right now considering Current and Future Market Conditions and Interest Rates?
  
• Reducing Funding Ratio Volatility
  
• Risk/Return – Does embracing LDI mean giving up much needed Returns?
  
• Are Plan Liabilities the only appropriate Benchmark?
  
• Understanding the Components of Performance Monitoring and Evaluation
  
• Low Pension Funded Status and Low Interest Rates – what are Plans doing to address these hurdles?
  
• Understanding Implementation Approaches, Strategies and Issues
  
• How to Implement LDI in a Pubic Fund Context
  
• Pension Buy-In – Insurance Policy Covering Benefits for a Selection of Pensioners. Are you fielding questions regarding this De-Risking Strategy and do you see the Advantages over a Pension Buyout?

Moderator:
John Geissinger, CFA, Chief Investment Officer, Executive Director, North Dakota State Investment Board

Speakers:
Gary Knapp, CFA, Managing Director, Liability Driven Strategies, Prudential Fixed Income

Eugene Podkaminer, CFA, Vice President, Capital Markets Research Group, Callan Associates Inc.

Lunch

Fixed Income

• Assessing the Current Environment: U.S. Dollar, Monetary Policy, Spreads, Yield Curve, Interest Rates, Foreign Investment in US Treasuries, etc.
  
• Historical Perspective – the 30 Year Bull Market in Bonds
  
• Is there more Risk in the Bond Market now compared to other time Periods?
  
• Outlook for Treasury Rates over the next 12-24 Months
  
• How should you be Positioned through 2014 knowing Bernanke plans to keep Rates Low until then?
  
• Portfolio Construction, Risk Management and the Importance of Diversification
• Strategies for the Current Economic Environment
• Disaggregation of Core and Core Plus Bond Approach – why it makes sense
• Risk/Reward for TIPs and Inflation Overlays
• Managing Risk with Inflation or Deflation – can you earn High Single Digit Returns without taking sides?
• Due Diligence on Managers: how to Evaluate Alternative Managers
• Ways to enhance Fixed Income Returns and capture Alpha
• Structured Products and Derivatives
• Landscape for MBS Market with GSE Reform Considerations
• Why Invest in Emerging Markets Local Fixed Income?
• Understanding how Commission Recapture can Lower Expenses and Increase Investment Returns

Moderator:
Herb W. Morgan, Board President, San Diego City Employees’ Retirement System

Speakers:
Trey Parker, Managing Director and Co-Head of Research, Highland Capital Management, L.P.
Michael V. Salm, Co-Head of Fixed Income, Putnam Investments
Matt Toms, CFA, Head of U.S. Public Fixed Income Investments, ING Investment Management

Currency and Currency Alpha

• How does Investing in Currency Diversify and Reduce Risk?
  
• Goals of a Currency Program
  
• Non-Correlated Returns to Equities, Fixed Income, and other Alternative Investments
  
• Liquid and Transparent Market
  
• What is Currency Alpha and how is it done?
  
• Can Currencies be Forecasted via Fundamentals, Cycles and Trends?
  
• Hedging Currency to Reduce Portfolio Volatility
  
• What are the Current Events and Risks in Developed Market Currencies?

Moderator:
Stephen Masarik, CFA, CAIA, Vice President, Strategic Investment Solutions, Inc., (SIS)

Speakers:

Glenn Ezard, Senior Consultant, Segal Rogerscasey
Ulf Lindahl, Chief Executive Officer, A.G. Bisset Associates, LLC

James Wood-Collins, Chief Executive Officer, Record Currency Management Limited

Commodities

• Current Market Environment and Outlook
  
• Long Term Global Supply, Demand and Pricing
  
• Diversification and Low Correlation to Equities
  
• Performance during Down Equity Markets
  
• Commodities as an Inflation Hedge
  
• Understanding the different Approaches to Investing in Commodities
  
• Investing in Long/Short vs. Long Only
  
• Active vs. Passive
  
• Should you be Investing in Natural Resource Equities or Commodities?
  
• Should you be Investing in Private or Public Natural Resources?
  
• Can you Generate Attractive Returns regardless of Pricing Environment while Managing Volatility?
  
• What are the Key Criteria that would lead to Manager Outperformance?
  
• Potential Increased Regulation in the Commodities Market and how might that affect Pension Plans

Moderator:
Damon G. Krytzer, CFA, Trustee, City of San Jose Police and Fire Retirement Plan

Speakers:
Darren T. Peers, Managing Director, Equity Analyst, NWQ Investment Management Company
Tyler Stevens, Managing Director, Fixed Income and Commodities, Commonfund

Refreshment Break

ESG, (Environmental, Social and Governance)

• Why should we consider ESG Issues and is there a Fiduciary Duty to address them?
  
• ESG Misconceptions
  
• How ESG should be best incorporated into the Investment Process – Portfolio Integration into all Asset Classes
  
• Demand
  
• ESG Fund Performance vs. Traditional Funds
  
• How has ESG Research and Data Evolved or Improved?
• Relevant Benchmarks for ESG Risk Measurement and Assessing ESG Factors

Moderator:
Craig Metrick, Principal and U.S. Head of Responsible Investment, Mercer Investment Consulting

Speakers:
Mary Jane McQuillen, Managing Director, Portfolio Manager ESG Investment Program, ClearBridge Advisors

Brian Rice, Investment Officer, California State Teachers’ Retirement System, (CalSTRS)

Emerging Markets - Overseas Opportunities

• Long Term Global Outlook
  
• Effects of a possible Global Recession
  
• What are the Demographics driving Growth in Emerging Markets?
  
• BRIC Counties – GDP, Growth, Debt and Reserves in comparison to Developed Markets
  
• Breaking down BRIC Prospects - which Countries offer the best Opportunities and Returns?
  
• China’s Growth – is it Sustainable and what are the Effects of a Slowdown there?
  
• Does the MSCI Emerging Markets Index understate China and India?
  
• Frontier Markets – should your Plan consider Investing in MENA Countries for further Diversification and Lower Correlation to Developed Markets?
  
• MENA – Pros and Cons
  
• How has the Asset Class Evolved?
  
• What is an appropriate Long-Term Allocation to Emerging Markets?
  
• Do you consider Emerging Markets to be an Inefficient Asset Class?
  
• Choosing an Emerging Markets Fund or Manager
  
• Should your Global Equities Allocation be by Region, Country or Sector?
  
• Active vs. Passive Debate
  
• Long-Term Outlook
  
• Barriers/Risks
  

Moderator:
Marshall Acuff, CFA, Trustee, Virginia Retirement System

Speakers:

Scott Becker, CFA, Senior Vice President, Senior Portfolio Strategist, Calamos Investments
Sam DeRosa-Farag, Managing Director, Portfolio Strategist, Morgan Creek Capital Management, LLC
Polina Kurdyavko, CFA, Senior Portfolio Manager, BlueBay Asset Management

Emerging Managers

• How are Plans defining Emerging Managers?
  
• What are the Benefits and Opportunities offered by Investing in Emerging Managers?
  
• How are Emerging Managers Exploiting Market Inefficiencies?
  
• Strategies for Implementing an Emerging Managers Program
  
• What form do the Programs take?
  
• Due Diligence and Key Points of Analysis for Selecting Emerging Managers
  
• Comparing the Attributes of Prospective Emerging Managers
  
• Research Statistics and Results on Emerging Managers
  
• What are the Growth Prospects?
  
• What are the perceived Risks of Emerging Managers?
  
• How do you Measure Success?
  
• What is an important Lesson Learned from your Experiences?
  

Moderator:
John Robinson, CTA, Senior Managing Director, Gray & Company

Speakers:

Stuart Bernstein, Emerging Manager Program Director, Teacher Retirement System of Texas

Jose Fernandez, Partner, StepStone Group, LLC

Victor L. Hymes, CEO, Chief Investment Officer, Legato Capital Management LLC
Kenyatta K. Matheny, Investment Officer – Emerging Managers, Teachers' Retirement System of the State of Illinois

Cocktail Reception

Cocktail Reception Concludes

Keynote Speaker

“Risk Parity Revisited, Old Paradigms Challenged”

Richard M. Charlton, Chairman, CEO, NEPC, LLC

Real Estate

(A) Current State of the Real Estate Market

• Real Estate Cycle – what Inning are we in?
  
• Current Conditions
  
• Commercial Real Estate Challenges – Large amount of Debt Maturities coming due
  
• Residential Real Estate Challenges – ARM Resets and the new Wave of Foreclosures
  
• Loan Extensions/Refinancing

(B) Profiting from Distressed Real Estate

• Loan Maturities and Future Opportunities
  
• Have Lenders started unloading?
  
• Role of the Government – what is their effect on the Market?
  
• What sort of Debt Investments are you looking at?
  
• Importance of Occupancy
  
• Cap Rates and Vacancy Rates
  
• Buying Distressed Residential Mortgage Pools
  
• Strategies for Selecting Investments
  
• Case Studies
  
• Drawbacks in this Environment

(C) Opportunities in Real Estate

• What Strategies do you see as the biggest Risks and the biggest Rewards/Relative Value for the Future?
  
• Is Core likely to get your Expected Returns right now?
  
• Role of Leverage
  
• Larger vs. Smaller Fund Size – which ones will Outperform going forward?
  
• Choosing a Manager – Stand Alone vs. Captive
  
• Joint Ventures with REITs – will we see more Pension Plans re-enter the market by teaming up with Commercial REITs? Why are these Joint Ventures being done?
  
• Growth of Direct Real Estate for Defined Contribution
  
• Asia and European Real Estate Outlook – Opportunities, Investment Trends and Capital Flows
  
• Why Farmland Investments make sense in a Low Return Environment – Natural Inflation Hedge, Low Correlation, Diversification, Agriculture’s Income Component
  
• Real Estate Secondary Market – Transaction Volume, Pricing, Projected Transaction Flow and Catalysts

Moderator:

Chae N. Hong, Senior Consultant, Hewitt EnnisKnupp, Inc.

Speakers:

Christy Fields, Managing Director, Real Estate, Pension Consulting Alliance, Inc., (PCA)

Donald J. Herrema, Executive Vice Chairman, Kennedy Wilson
David M. Sherman, President, Metropolitan Real Estate Equity Management, LLC
Marc Weiss, Partner, Head of Private Real Estate Secondaries, Partners Group

Infrastructure

• Infrastructure Demand and Size of the Market – where are they projected to be for the Future?
  
• Infrastructure Spending/Funding Gap – Explanation of the Shortfall and if this Translates into Increased Opportunities for Pension Plans
  
• Today’s Deal Flow Activity and Fundraising
  
• Infrastructure Objective in Portfolio – Diversification, Inflation Protection, etc.
  
• Performance – is Infrastructure delivering on its advertised attributes? What are the Return Expectations from Plan Sponsors?
  
• What is a suitable Benchmark?
  
• Risk/Return Profiling – which Infrastructure Assets are classified as High Risk and Low Risk?
  
• In which Sectors will investors find the best Opportunities and Returns? Any Emerging Trends/Themes? Pick up in Co-Investment?
  
• Implementation Considerations – Primary Partnerships, Direct, Co-Investment, Fund of Funds, Publicly Listed – MLP’s, Separate Accounts
  
• What should you look for when Selecting an Infrastructure Manager?
  
• Outlook and Challenges
  
• Mature vs. Emerging Markets
  
• What are the Largest Risks associated with Infrastructure Investing? Understanding Debt Risk

Moderator:
David Altshuler, PhD, Senior Vice President  - Infrastructure Practice Leader, Meketa Investment Group, Inc.

Speakers:
George Diehr, PhD, Vice President, Board of Administration, Vice Chair of Investment Committee, California Public Employees’ Retirement System, (CalPERS)

Abel Mojica III, Head of Corporate Development, Tortoise Capital Advisors
Benjamin W. Morton, Senior Vice President, Portfolio Manager, Cohen & Steers Capital Management Inc.

Refreshment Break

Hedge Funds

(A) Current and Future State of the Hedge Fund Industry

• How large is the Industry now and how many Funds will there be in Five Years?
• How many Good Hedge Funds are there?
  
• Pension Inflows – are they still going to the Largest Hedge Funds? Are there Capacity Constraints with the most Desirable Hedge Funds?
• The ongoing Deleveraging Process – where are we?
  
• Will Hedge Funds become the Primary Source of Manager Alpha?
  
• How to go about debunking the Misconception that Hedge Funds are Risky
  
• Transparency and Risk Aggregation Data – are they valuable and accurate?
  
• Open Protocol Enabling Risk Aggregation (OPERA), explained
  
• Valuation Procedures and Controls
  
• Fee Arrangements – what sort of Trends are you seeing? Do Investors have the ability to Renegotiate?
  
• How will Hedge Funds, Real Estate and Private Equity Intertwine in the Years Ahead?

(B) Hedge Fund Portfolio Construction, Selection and Strategies

• Should you be considering Smaller Hedge Funds and do they Outperform their Larger Peers? What Size is too big?
  
• Considerations for Selecting the right Hedge Fund or Fund of Funds – Due Diligence and Manager Selection. What are the Key Traits you should be looking for?
  
• Should Independent Third Party Administrators become a Necessity for Operational Due Diligence and to avoid Fraud?
  
• Fund of Funds vs. Direct
  
• What sort of innovative Changes have Fund of Funds adopted to stay relevant to their Pension Clients?
  
• Specialization – is this the Trend?
  
• Which Strategies offer more Transparency and Liquidity?
  
• Should you ask for a Separate Account? What is the Advantage and Disadvantage?
  
• Do you find Opportunities within the Global Macro Space attractive and if so, why?
  
• If there was a Hedge Fund Strategy you would Invest in over the next Decade, which one would it be and why?

Speaker/Moderator:
Stephen L. Nesbitt, CEO, Cliffwater LLC

Speakers:
John Claisse, PhD, Head of Portfolio Group, Albourne America

Kathleen Powers Dunlap, Managing Director, Barclays Capital
Lionel Erdely, U.S. CEO and CIO of Alternative Investments, Lyxor Asset Management Inc.
Ken Stemme, Head of Research, Larch Lane Advisors LLC

Managed Futures

Panel Sponsored By:

• What should be the Selection Criteria for an Asset Class and Strategy?
  
• Global Macro’s place in the Hedge Fund Industry
  
• How to Implement an Allocation to Managed Futures
  
• How does Investing in Managed Futures Diversify?
  
• Non-Correlation to Equities, Fixed Income and other Alternative Investments
  
• Performance during periods of Stress or Crisis Events
  
• Qualitative Traits – Liquid, Transparent and Regulated
  
• Increasing your Exposure to Global Markets and Non-Financial Sectors
  
• Managed Futures as an Inflation Hedge
  
• How do you Manage Risk and Volatility?
  
• Comparing Managed Futures to Traditional Assets as well as other Hedge Fund Strategies
  
• Recent and Historical Performance of Managed Futures

Moderator:
Justin Dew, Senior Managing Director, Director Strategic Development, Welton Investment Corporation

Speakers:
Josée Mondoux, CFA, CAIA, FMA,FCSI, Director of Investments, The Canadian Medical Protective Association, (CMPA)

Lincoln Smith, Portfolio Analyst, Albourne America

Lunch

Distressed Debt

• Where are we in the Distressed Cycle? How much of the Opportunity has passed and how much remains?
  
• When could we see the Best Opportunities from Maturing Loans coming due?
  
• Have the Capital Markets Activity fixed a good portion of the Maturity Wall Problem?
  
• Which Sectors will create the Best Opportunities?
  
• Do you favor Yield focused Corporate, Distressed for Control, Distressed Mortgages, other?
  
• International Distressed Debt Opportunities – do you see Opportunities in Asia? Europe?
  
• How does a Pension Plan go about choosing the right Distressed Strategy, Investment Style and Approach?
  
• What should a Pension Plan look for in a Distressed Manager that might be Different from other types of Managers?
  
• Importance of Patience and staying Defensive
  
• Are you seeing more Buyout Firms moving into Distressed Deals?
  
• Passive, Control or Non-Control – which do you see as the Best Strategy?
  
• What are the Implications and Risks associated with Investing in Distressed now? Pitfalls of the Economy?
  
• What Returns can Investors expect over the next Five Years?

Moderator:

Dan McAllister, Treasurer-Tax Collector, San Diego County, Board Member, San Diego County Employees Retirement System, (SDCERA)

Speakers:

Tom Capasse, Principal, Waterfall Asset Management
W. Anthony Edson, Partner & Co-Founder, Stone Tower Capital LLC
James Malley, Portfolio Manager, Credit, P. Schoenfeld Asset Management LP (PSAM)

Credit Strategies and Lending Opportunities

• What is the Current State of the Credit Market?
  
• Where are we in the Credit Cycle and how will it play out?
  
• Any Lessons Learned from 2008 that we can apply to today’s Environment?
  
• Debt coming Due in 2012-2015 from Amend-and-Extend – how should Investors be Positioned for the Refinancing Cliff? Where are the Opportunities?
  
• What is the Current State of the Securitization Market and the Trend in terms of Re-Leveraging?
  
• CLO Reinvestment Challenge
  
• Is the Party Over in High Yield and is it time to get Short?
  
• Is the Credit Quality of New Issuance beginning to Deteriorate?
  
• How do you Manage a Credit Program in a Volatile Market?
  
• European Sovereign Debt Crisis and the Large Opportunity Set
  
• How can Pension Plans take advantage of the available Opportunities and Profit from it?
  
• How should Pension Plans go about Analyzing and Selecting from the various Credit Funds and Direct Lending Strategies?
  
• What are the Trade-offs between Mid-Market and Large Market Credit Investing?
  
• How do you go about Selecting a Manager?
  
• How has the Competition (Fixed Income, Private Equity, Hedge Funds, etc.), altered the Market?

Moderator:
John Barger, Board of Retirement, Los Angeles County Employees Retirement Association, (LACERA)

Speakers:
Scott Caraher, Co-Portfolio Manager, Symphony Asset Management

Michael E. Paasche, Managing Director, Providence Equity Capital Markets

Tom Quimby, Managing Director, Medley Capital LLC

Secondaries

• Reasons why are Pension Plans turning to the Secondary Market – what has been the recent Seller Motivation?
  
• What is the Current Deal Flow Environment and Volume of Secondary Activity?
  
• Is there too much or not enough Secondary Capital given the Current Deal Flow?
• Will we get a Boost to Secondary Market Activity Years after the Volker Rule is Enacted?
  
• What Forces are behind the Bid-Ask Spread?
  
• What sort of Discounts are we seeing on the Secondary Market?
  
• What are the Expectations for the Future – Supply/Demand, who will be the Sellers and where are Valuations headed?
  
• How should LPs get Exposure to the Secondary Market and what are successful Buy Strategies?
  
• What should LPs consider when Liquidating portions of their Private Equity Portfolio?
  
• What are the Risk Return Characteristics of Secondaries vs. Private Equity in general?

Moderator:
Robert L. Greene, Trustee, Virginia Retirement System

Speakers:

Red Barrett, President, CEO, Permal Capital Management, LLC

Ian H. Charles, CFA, Partner, Landmark Partners
Roland Reynolds, Managing Director, Industry Ventures, LLC

Refreshment Break

Private Equity

• Liquidity – is it a concern and has it had an effect on your Strategy Selection? Which more Liquid Strategies are of interest?
  
• Capital Overhang/Dry Powder – is it a concern and why?
  
• Difficulty in Fundraising – What are the Characteristics of those who are successfully able to Raise a Fund?  How extreme will the GP Shakeout be?
• Growing Trend of Strategic Customized Relationships between big LPs and GPs with Separate Accounts

• Pensions committing More Capital to Fewer Managers?
  
• Fund of Funds Survival of the Fittest/Consolidation – how will the space Evolve during future Company Closures/Mergers?
  
• Selecting a Fund of Funds Manager: Due Diligence, Key Criteria, Innovation, Performance, etc. What are the Points of Distinction?
  
• What Trends have you seen for Fees and Terms?
  
• Alignment in the LP/GP Relationship – what have we seen as a result of ILPA?
  
• Buyouts – what are your views given the Capital Overhang?
  
• What are your Expectations for Deal Flow Volume? What will it take to get Deals Done?
  
• Exit Market – what have you Identified and Learned from recent Successful Exits? Will PE Firms hold onto Companies for a Longer Period of Time?
  
• Do you expect Co-Investment to be a Strategy that gathers Increased Attention from Pension Plans?
  
• Venture IPO and M&A Exit Pipeline – are the Winners concentrated within the top few Firms? Is Social Media Sustainable or a Bubble?
  
• Should a case be made for Early Stage? Outperformance of Smaller Venture Funds?
• Demand for Mezzanine – Benefit from the Overhang?
• Risk/Reward for Mezzanine and the Non-Correlation Factor
• Where do you expect that we’ll see the Best Returns over the next Five Years?

Moderator:

Kevin Tatlow, CAIA, Senior Consultant, Private Markets, NEPC, LLC

Speakers:

Andy Hayes, Private Equity Investment Officer, Oregon State Treasury/Oregon Investment Council

Luca Salvato, Partner, Coller Capital, Inc.
Michael W. Taylor, Managing Director, HarbourVest Partners, LLC
David A. York, CEO, Managing Director, Top Tier Capital Partners LLC

CIO Roundtable

Fiscal Health and Asset/Liability Evaluation

• What is your Funded Status and has it changed your decisions to move ahead with Liquid or Illiquid Investments?
  
• Is your Fund active in regards to Liquidity and Cash Flow Assessments?
  
• Has your Fund taken adequate Pension Risk Measures and Diversified to guard against another Stock Market Collapse? Have you taken Small Conservative Steps or are you much Better Positioned than 2008?
  
• What significant Rebalancing Changes have you made in your Portfolio?
  
• Has your Fund done any Stress-Testing under Extreme Economic Scenarios?
  
• What sort of De-Risking Strategies or new Risk Management Approaches has your Fund Integrated into the Investment Decision Process?
  
• Do you believe Plans will be able to beat the Assumed Rate of Return over the next 10 Years?

Allocations and Considerations for the Future

• Has your Plan recently Increased or Decreased its Equity Exposure?
  
• Are you worried about the Long Term Aftermath of a “Bond Bubble” and have you positioned your Fund accordingly?
  
• What Allocations has your Fund made or Strategies that your Fund utilizes that will Protect against Inflation?
  
• What Trends have you seen towards more Liquid Investments and has your Fund deployed Assets into these types of Investments?
  
• What do you feel is the proper Emerging Markets Allocation and are there any Emerging Regional Strategies that are attractive?
  
• Which Strategies do you expect to Outperform in the next 3-5 Years?
  
• Are there any Asset Classes that you expect to Allocate more Money to?

Alignment of Interests

• What Changes or Trends have you noticed in Fee Structures/Terms and your Bargaining Power?
  
• Have you Renegotiated the Commitment Terms to any Funds? What Tactics work?
  
• Have you worked with your Consultant to construct Operational Structures to back the beliefs of your Board, (especially in opportunistic investments)?
  
• Any important “Lessons Learned” that you can share from your individual Plan Experiences?
  

Moderator:
Ronald D. Peyton, Chairman, CEO, Callan Associates, Inc.

Speakers:
John Geissinger, CFA, Chief Investment Officer, Executive Director, North Dakota State Investment Board

Ryan P. Parham, JD/MBA, Chief Investment Officer, Public Safety Personnel Retirement System of the State of Arizona, (PSPRS)

Michael Brakebill, CFA, Chief Investment Officer, Tennessee Consolidated Retirement System

John Johnson, CFA, Chief Investment Officer, Wyoming Retirement System

Cocktail Reception

Cocktail Reception Concludes

Breakfast

Bus Leaves for Golf Course

Pension Bridge Golf Tournament

Golf Awards - Prizes, Lunch & Drinks

Supporting Partner of The Pension Bridge Annual