Public Funds Summit - March 3-5, 2008 - Huntington Beach, CA

LAST UPDATED: Friday, February 29 2008
  Day One, Monday, March 3, 2008

The Morning Sessions will be shared with the Summit on Alpha Driven Strategies and the National Public-Private Partnerships Symposium 07:30 AM Continental Breakfast and Registration begins 08:00 AM BOOK SIGNING WITH NIALL FERGUSON 08:20 AM Welcome Remarks by Chairpersons Speakers: Doug Crandall, Executive Director, RETIRED PUBLIC EMPLOYEES OF NEW MEXICO Ruth T. Ryerson, Executive Director, FORT WORTH EMPLOYEES RETIREMENT FUND 08:30 AM KEYNOTE ADDRESS — NIALL FERGUSON, LAURENCE A. TISCH PROFESSOR OF HISTORY, HARVARD UNIVERSITY "THE GEOPOLITICS OF THE CREDIT CRUNCH" 09:15 AM PUBLIC FUND UNIVERSE ANALYSIS REPORT The R.V. Kuhns Public Fund Universe Analysis is conducted bi-annually, for the periods ending December 31st and June 30th. The analysis provides an “apples to apples” comparison of asset allocation, performance, fees and actuarial comparative data from over 75% of U.S. public pension funds with combined assets of over $1.75 trillion. Presenter: Russell Kuhns, CEO, R.V. Kuhns & Associates, Inc. 09:45 AM PENSION EXECUTIVE ROUNDTABLE: ASSET ALLOCATION — TRENDS & PATTERNS FOR PUBLIC FUNDS Today’s public pension plans are constantly on the search for the best trends and strategies to effectively manage their portfolio. Some plans have become more aggressive in their approach than others and some may have legislative constraints that can prohibit investments in more “exotic” funds. During this session, hear first hand what new strategies plans are considering and employing. • What challenges do public plans face when managing their portfolios? • What new asset classes are worth considering? • Which strategies are working and which ones are not? • How often should plans restructure their portfolios? • Are the traditional "style boxes" limiting your investment managers to average returns? Moderator: Bill Howard, Vice President, CALLAN ASSOCIATES Panelists: Jon Bauman, Executive Director, TEACHERS' RETIREMENT SYSTEM OF THE STATE OF ILLINOIS Tom Lightvoet, Principal, MERCER Dan Owens, Executive Director/Trustee, HOLYOKE CONTRIBUTORY RETIREMENT SYSTEM 10:30 AM REFRESHEMENT BREAK 10:45 AM THE QUEST FOR ALPHA In March of 2007 CalPERS converted the $6.7 billion that was at the time allocated to their international fixed-income portfolio to a 130/30 strategy. In July of 2006, the Pennsylvania SERS Board approved an expansion of their portable alpha strategy. The $14 billion Alaska Pension Investment Board, Juneau began using overlay strategies in 2006. Hear about the use of 130/30, portable alpha and LDI strategies in a comparative look at the risks and benefits of these innovative approaches to investments. • Are alpha driven strategies only for the multi-billion dollar funds? • Is there a framework to determine which strategy fits your plan? • How are these strategies performing in the current market? • Nontraditional strategies in the pursuit of alpha Moderator: Kathleen MacLaren Norgaard, Managing Partner, MACLAREN ADVISORS, LLC Panelists: Larry Schimmel, Esq., Trustee, NEW YORK CITY EMPLOYEES RETIREMENT SYSTEMS Jeffrey Alt, CFA, Vice President, Institutional Client Relations, PRUDENTIAL FIXED INCOME MANAGEMENT Tina Williams, Chief Executive Officer & Chief Investment Officer, FIS GROUP, INC. Sabrina Callin, Executive Vice President, PIMCO Peter Gerlings, Managing Director, K2 ADVISORS LLC 11:45 AM PUBLIC-PRIVATE PARTNERSHIP OVERVIEW Investors face many questions and difficult choices when deciding how to structure and finance public-private partnerships. Given new legislation, regulations and our ever changing economy, there is a great deal of understanding required to successfully enter these partnerships. Several states have granted authority for their local government entities and authorities to explore P3 possibilities. Others are investigating how the current investment cases are progressing. This session will illustrate what types of revenue-generating assets will most likely be targeted for private ownership and/or management and how governments can take advantage of private financing. • What types of partnerships are forming nationally and locally? What are the future types of partnerships? • What are the main opportunities? The obstacles? • What legislation and regulations are affecting the development? • How do liquidity problems in the credit markets affect public-private partnerships? Moderator: Kimberly K. Edwards, Executive Director, TEXAS PUBLIC FINANCE AUTHORITY Panelists: David Wallace, Mayor, CITY OF SUGAR LAND, TEXAS Stanton Hazelroth, Exec Dir, CA INFRASTRUCTURE AND ECONOMIC DEVELOPMENT BANK Andrew Chapman, Division Director and Senior Asset Manager, MACQUARIE Keith Hembre, Chief Economist, FAF ADVISORS 12:45 PM LUNCHEON 02:00 PM PERSPECTIVES ON RISK Speaker: Mark Baumgartner, Ph.D., CFA, Managing Director, MORGAN STANLEY 02:20 PM THE SILVER LINING BEHIND THE SUBPRIME CLOUD Asset-backed securities, mortgage-backed securities and collateralized debt obligations (CDOs) are just several types of structured finance products that have come into the limelight because of recent turn of events in the subprime market. Investors, including public pension plans that purchased more than $500 million in CDO equity tranches over the past five years, were using these types of products because they allowed for portfolio diversification and the possibility of higher alpha. • What are collateralized debt obligations, asset-backed securities and mortgage-backed securities? • How can pension plans recover from recent losses from this investment vehicle? • What new oversight and transparency will be instituted going forward? Moderator: Dr. Michal Foriest Settles, Professor, CITY COLLEGE OF SAN FRANCISCO Panelists: Paul Hoffman, Vice President, BONDS.COM Larry S. Pokora, Senior Vice President, Investor Relations, PAULSON & CO. INC. Tim Schuler, Senior Vice President & Investment Strategist, PERMAL GROUP Daniel Mee, Executive Director, TREMONT REALTY CAPITAL, LLC 03:10 PM OFFSHORE REAL ESTATE INVESTING & PROTECTING YOUR REAL ESTATE PORTFOLIO Real estate remains an established investment that public plans turn to for positive returns. From Maryland to California there is extraordinary downward pressure on real estate values, particularly in the residential sector; all while many public plans increase their commitments to real estate. In August, CalPERS allocated $1 billion into an Asian real estate funds that will focus on office, retail and residential properties. • How does the public plan best monitor its real estate investments to “early detect” underperforming assets in a sliding market? • What property sectors are/will be adversely affected by the current downturn and when? Is there a risk of principal loss? • Which overseas countries or regions are most in favor and how are these views expected to change in the coming years? • Which U.S. investment sectors, ranging from real estate investment trusts (REITS), retail and commercial properties, are seeing the largest increases or decreases? • How does the public plan best take advantage of the growing importance of global real estate securities? Moderator: Chris Heatley, Vice Chairman of the Board, CITY OF ANN ARBOR EMPLOYEES' RETIREMENT SYSTEM Panelists: Susan Carter, Investment Director, Real Estate, NORTH CAROLINA DEPARTMENT OF STATE TREASURER Dr. Indraneel Karlekar, Head of Global Research & Strategy, ING CLARION REAL ESTATE SECURITIES Richard K. Hollowell, Partner-in-Charge, SQUAR MILNER REAL ESTATE SERVICES GP 04:00 PM REFRESHMENT BREAK 04:15 PM QUANT HEDGE STRATEGIES — MOVING FORWARD WITH CONFIDENCE Quant investing involves complex statistical factors in order to measure a stock’s value, earnings quality, growth and share-price momentum. Quant-style investing has been widely popular with some public plans, but volatility has brought it under the microscope. • What exactly are quant strategies and how will they work for public plans despite volatility? • How has this sector been reshaped or changed due to this year’s events? • The confidence factor: does quant still compute? Moderator: Judith Posnikoff, Managing Director, PACIFIC ALTERNATIVE ASSET MANAGEMENT COMPANY Panelists: Rajeev Seth, Managing Director, BEATINDEX Jaeson Dubrovay, Senior Consultant, Hedge Funds, NEPC 05:00 PM INSTITUTIONAL USES OF EXCHANGE TRADED FUNDS • Market Trends in AUM, liquidity, and transaction costs • Institutional Applications of ETFs • Securities Lending • Transitions • Cash Equitization • Rebalancing • Portfolio Completion • Tactical Allocation Presenter: Firouzeh Attwood, Business Development Officer, BARCLAYS GLOBAL INVESTORS SERVICES 05:30 PM SESSIONS CONCLUDE/COCKTAIL RECEPTION SPONSORED BY:

LAST UPDATED: Wednesday, February 27 2008
  Day Two, Tuesday, March 4, 2008

The Morning Sessions up until 9:50 will be shared with the Summit on Alpha Driven Strategies 07:15 AM Continental Breakfast 07:55 AM Chairpersons Recap Speakers: Doug Crandall, Executive Director, RETIRED PUBLIC EMPLOYEES OF NEW MEXICO Ruth T. Ryerson, Executive Director, FORT WORTH EMPLOYEES RETIREMENT FUND 08:00 AM INSTITUTIONAL APPLICATIONS OF ETFS IN BETA AND ALPHA PORTFOLIOS Speaker: Sean O'Hara, President, REVENUESHARES INVESTOR SERVICES, LLC 08:15 AM REALITIES OF FUNDING LEVELS AND ASSET CLASS BEHAVIOR: A CONSULTANT’S CONCLUSIONS This session will provide the latest data on the fiscal status of state retirement systems as well as the importance of current funding level trends. Issues to be addressed include: • The liability side of the equation - are there enough assets to cover liabilities? • Actuarial assumptions and their impact on funding status • Impact of asset allocation Presenter: Steven Foresti, Managing Director, WILSHIRE ASSOCIATES 08:45 AM CONSULTANTS ROUNDTABLE — HOW COMPETITIVE IS THE LANDSCAPE? Institutional money mangers and consultants are facing increasing competition. Some are welcoming this challenge head on since plans are actively searching for new consultants every couple of years. This session will explore the latest trends in research, best practices and concerns. • How to qualify the inherent value of consultants by getting the most from the relationship • How to set performance expectations to leverage their talents and their internal resources? • How can consultants adapt to the changing landscape and be pro-active in the future? Moderator: Randy Kirkland, President and CEO, KENNEDY CAPITAL MANAGEMENT Panelists: Dennis Sugino, President, CLIFFWATER LLC Jaeson Dubrovay, Senior Consultant, Hedge Funds, NEPC Julia Bonafede, Senior Managing Director, WILSHIRE ASSOCIATES 09:30 AM SECURITIES LITIGATION UPDATE: THE SUBPRIME MELTDOWN • Overview of the Subprime Mortgage Crisis on Wall Street • Understanding Accounting Related Allegations • How this Effects Public Pension Funds in the U.S. • Protecting The Public Pension Fund Presenter: Marisa N. DeMato, Associate, COUGHLIN STOIA GELLER RUDMAN & ROBBINS, LLP 09:50 AM REFRESHMENT BREAK 10:05 AM GLOBAL INVESTING — HAS THE TIME COME? A decade ago, plans who utilized global investment strategies had mediocre results. Public pension funds, on average, increased their allocations to international equity in 2006 to 18.3% of the portfolio from 17.8% in 2005. Some say the BRICs (Brazil, Russia, India and China) are the way to go, but there has been some emergence from Eastern and Central European nations lately. • How does global investing fit within a portfolio’s allocation? • What are the unique opportunities and risks to global investing? • What are important barriers to consider when investing in emerging markets? • What new strategies and countries are worth watching for the next wave of opportunities? Moderator: Dr. Suzanne Taylor, Chairperson, OLD SAYBROOK RETIREMENT BOARD Panelists: Patrick J. Kelly, Principal, ENNIS KNUPP + ASSOCIATES Paul Doane, Executive Director, ARKANSAS TEACHER RETIREMENT SYSTEM Christopher Swany, Portfolio Specialist, FISHER INVESTMENTS INSTITUTIONAL GROUP Christopher Neill, Portfolio Strategist, THORNBURG INVESTMENT MANAGEMENT, INC. Chris Herrera, Portfolio Manager, NICHOLAS-APPLEGATE CAPITAL MANAGEMENT 11:15 AM PRIVATE EQUITY IN THE AFTERMATH OF THE CREDIT CRUNCH Many public plans have recently increased, or are considering increasing their allocations to private equity. However, the credit crunch of 2007 has significantly decreased the amount of debt funding available for private equity deals. How will this fundamental shift in the market landscape affect return and risk expectations for private equity? • Historically, how effectively have private equity funds produced returns for public pension plans? • Will private equity be able to earn attractive rates of return with limited access to debt financing? • Which types of private equity funds are more likely to be hurt by the lack of debt financing? • What are the emerging trends of utilizing private equity funds by public plans? • Will interest in the private-equity tax bill in Congress gain momentum in 2008 and what effect could this have on public plans? Moderator: James Slevin, Vice President, UNIFORMED FIREFIGHTERS ASSOCIATION OF GREATER NEW YORK Panelists: Edwin T. Burton, Trustee, VIRGINIA RETIREMENT SYSTEM William T. (Billy) Charlton, Jr., Ph.D., CFA, Managing Director, CONTEXT PRIVATE EQUITY ALPHA 12:00 PM DAY TWO SESSIONS CONCLUDE 12:30 PM GOLF TOURNAMENT

LAST UPDATED: Tuesday, February 19 2008
  Day Three, Wednesday, March 5, 2008

These Sessions will be shared with the Summit on Alpha Driven Strategies up until 11:00 and then the remaining Concluding Sessions will be shared with the Summit on Alpha Driven Strategies and the National Public-Private Partnerships Symposium 08:00 AM Continental Breakfast 08:45 AM Chairpersons Recap Speakers: Doug Crandall, Executive Director, RETIRED PUBLIC EMPLOYEES OF NEW MEXICO Ruth T. Ryerson, Executive Director, FORT WORTH EMPLOYEES RETIREMENT FUND 09:00 AM KEYNOTE ADDRESS Speaker: Dr. Stephen E. Roulac, CEO, ROULAC GLOBAL PLACES, LLC 09:30 AM SELECTING THE RIGHT FUND MANAGERS AND INVESTMENT CONSULTANTS Many plans struggle with the decision to dismiss a poor performing fund manager or investment consultant and utilize the services of a transition manager. They can run into overt and hidden conflicts with a consultant. Learn what issues committees consider when hiring a new fund manager or investment consultant. • What do plan sponsors look for in a fund manager or investment consultant and why is the timing of the transition so important? • When you select a consultant or manager what is fair as a reasonable period to let someone run with the strategy you hired them for? • What is the relative role of the consultant, staff and trustees? • What are the big pitfalls to avoid? Moderator: René Nuñez, Trustee, TEXAS PERMANENT SCHOOL FUND Panelists: Marc Rosenberg, President, QUALITY MANAGER CONSULTANTS, LLC James Meynard, Executive Director, GEORGIA FIREFIGHTERS' PENSION FUND David Bergman, Managing Director, GLOBAL TRANSITION SOLUTIONS Brent W. Hillhouse, Institutional Sales Executive, THE VANGUARD GROUP 10:15 AM ACTUARIAL ROLES AND RELATIONSHIPS Fund managers make actuarial assumptions about how much they will be required to pay out to pensioners, and then they try to ensure that the rate of return on their portfolios equals or exceeds the anticipated payout needed. This is one of many services actuaries provide. This session will highlight what role actuaries play within public pension fund systems, how plans are managing the relationship with their actuary and lessons learned from conducting an RFP selection process. • Actuarial responsibilities defined • Who from the pension board is responsible for these assumptions? • How can trustees help actuaries? Moderator: Gary Bland, State Investment Officer & State Council Member, NEW MEXICO STATE PERMANENT FUND Panelists: William Fornia, Senior Vice President, AON CONSULTING Steve Hutt, Executive Director, DENVER EMPLOYEES' RETIREMENT PLAN Jerry Davis, Chairman of The Board of Trustees, NEW ORLEANS MUNICIPAL EMPLOYEES' RETIREMENT SYSTEM 11:00 AM REFRESHMENT BREAK 11:15 AM RISING HEALTHCARE COSTS Longer life spans and rising healthcare and pension costs for municipal employees continue to be a problem. Several states have searched for alternative methods, such as property tax hikes, to close growing local budget gaps while at the same time trying to yield better rates of investment. There has been discussion about a national healthcare system, but will it become a reality or is consolidation part of the solution? • How are earlier retirements impacting healthcare costs and how can employers offset or prepare for these costs? • What strategies are plans employing to reduce healthcare costs? • How are local governments addressing rising healthcare costs? • What plan designs have been implemented and how is this communicated to employees? • What effect will GASB 43 and 45 have on plans? • What is a VEBA and how can it help with retiree health care costs? Moderator: Robert L. Robertson, President, PROFESSIONAL FIREFIGHTERS OF GEORGIA Panelists: Charlie Chittenden, Director, Retirement, BUCK CONSULTANTS Dr. Suzanne Taylor, Chairperson, OLD SAYBROOK RETIREMENT BOARD Susan G. Murphy, Trustee, COLORADO PUBLIC EMPLOYEES RETIREMENT ASSOCIATION 12:00 PM DIVESTMENT — CAN PUBLIC PLANS TRULY BECOME “TERROR FREE”? With billions of state pension dollars invested in companies that do business with nations identified as supporting terrorism, some local and state lawmakers are reaching for global results with legislation. Those nations include Iran, Sudan and North Korea. There have been recent legislative and legal actions taken by several states, moving toward divestitures of pension fund holdings tied to these countries. • Sudan Accountability and Divestment Act of 2007 • Understanding the full range of divestment proposals that are taking place across the country • How do you determine who is on the list? • How effective is divestment? Moderator: Vicki Hearing, Public Information Officer, STATE OF WISCONSIN INVESTMENT BOARD Panelists: Robert Gentzel, Director, Office of Communications & Policy, PENNSYLVANIA STATE EMPLOYEES' RETIREMENT SYSTEM Adam Sterling, Director, SUDAN DIVESTMENT TASK FORCE Matthew Potter, Trustee, WYOMING RETIREMENT SYSTEM 12:45 PM THE THIRTEENTH ANNUAL PUBLIC FUNDS SUMMIT CONCLUDES


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